Principal Commissioner Of Income Tax Vadodara 1Versus v. C/Taxap/934/2018 Order

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 934 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX VADODARA 1Versus GUJARAT STATE FERTILIZERS AND CHEMICALS LTD==========================================================Appearance:MR.VARUN K.PATEL(3802) for the PETITIONER(s) No. 1MR J P SHAH, SR ADV FOR MR MANISH J SHAH(1320) for the RESPONDENT(s) No. 1========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIandHONOURABLE MR.JUSTICE B.N. KARIA Date : 27/08/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. In this appeal filed by the Revenue, question raises about the correctness of the view of the Income Tax Appellate Tribunal granting interest under section 244A of the Income Tax Act, 1961 ['the Act' for short] to the assessee on the refund of the interest charged under section 220(2) of the Act. We notice that in case of K. Lakshmansa and Co. vs. Commissioner of Income Tax and anr reported in 399 ITR 657 Supreme Court made following observations:correctness of the view of the Income Tax Appellate Tribunal granting interest under section 244A of the Income Tax Act, 1961 ['the Act' for short] to the assessee on the refund of the interest charged under section 220(2) of the Act. We notice that in case of K. Lakshmansa and Co. vs. Commissioner of Income Tax and anr reported in 399 ITR 657 Supreme Court made following observations: “19. The above extract would clearly show that a corresponding right exists, to refund to individuals any sum paid by them as taxes which are found to have been wrongfully exacted or believed to be, for any reason, inequitable. The statutory obligation to refund, being non discretionary, carries with it the right to interest, also making it C/TAXAP/934/2018 ORDER clear that the right to interest is parasitical. The right to claim refund is automatic once the statutory provisions have been complied with.” 2. In the result, Tax Appeal is dismissed. (AKIL KURESHI, J) JYOTI V. JANI (B.N. KARIA, J)