The Director Of Income Tax (International Taxation v. M/S.credit Lyonnais (Now Calyon Bank

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.681 OF 2010 The Director of Income Tax (International Taxation)..Appellant. Versus M/s.Credit Lyonnais (Now Calyon Bank) ..Respondents. Mr.Suresh Kumar for the appellant.Mr.P.J. Pardiwala, Senior Advocate with Mr.Rajiv Singh i/by Crawford Bayley & Co. for the respondent. CORAM : J.P. Devadhar & A.A. Sayed, JJ. DATE : 8[th] August, 2011. P.C. : 1.Whether the Income Tax Appellate Tribunal was justified in confirming the order of the Commissioner of Income Tax (Appeals) in deleting the interest levied under Section 220 of the Income Tax Act, 1961 is the question raised in this appeal. 2.The Income Tax Appellate Tribunal following its decision in the case of JCIT V/s. Deutsche Bank A.G. for assessment years 1995-96 and 1996-97 held that interest under Section 220(2) ought not to be levied where refund was due on the basis of the return filed and there was delay in working out the refund resulting into excess levy of interest in one assessment year and in some other assessment year, interest under Section 244A is granted on account of delay in processing of refund. In the present case, the assessee had filed a letter dated 26[th] March 2004 requesting the assessing officer to process the return immediately and to adjust the refund due on the basis of return against the demand for assessment year 2001-2002. 3.Counsel for the Revenue fairly states that no appeal has been filed against the order of the Income Tax Appellate Tribunal in the case of Deutsche Bank A.G. No case is made out for taking a different view. In these circumstances, no fault can be found with the decision of the Income Tax Appellate Tribunal in deleting the interest levied under Section 220(2) of the Income Tax Act, 1961. The appeal is accordingly dismissed with no order as to costs. (A.A. Sayed, J.) (J.P. Devadhar, J.)