The Learned Tribunal, Relying Upon The Earlierdecision Of The Hon'ble Supreme Court In The Case Of Sandvikasia Ltd v. Cit (280 Itr 643) (Sc), Dismissed The Revenue'sappeal

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 25.04.2019 CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE C.V.KARTHIKEYANTax Case Appeal No.439 of 2010 Commissioner of Income TaxChennai. ..Appellant M/s.Ashok Leyland & Finance Ltd.,(now merged with M/s.Indusind BankLimited),Old No.115, 116 New No.34, G.N.Chetty Rd.,T.Nagar, Chennai-17 ..Respondent Appeal under Section 260A of the Income Tax Act, 1961,against the order of the Income Tax Appellate Tribunal, Chennai'D' Bench, Chennai, dated 13.10.2009, made in ITANo.662/Mds/2009 prepared against the order of the Commissionerof Income Tax(Appeals)III, Chennai dt.29.12.2008, made inI.T.A.No.109/07-08/A-III, against the order dt.28.05.2007, madein C.I.R.No.AX5-050/1993-94 of the Assistant Commissioner ofIncome Tax, Company Circle I(1), Chennai. For Appellant : Mr.T.Ravikumar Senior Standing CounselFor Respondent : Mr.R.Venkatnarayanan for Mr.R.VijayaraghavanJUDGMENT(By Dr.Vineet Kothari, J.) Revenue has filed this Appeal under Section 260-A of theIncome Tax Act,1969, raising the following Substantial Questionof Law arising from the order of the learned Income TaxTribunal, dated 13.10.2009, dismissing the Revenue's Appeal forAssessment Year 1993-1994 :- “Whether in the facts andcircumstances of the case, theAppellate Tribunal was right inholding that the Revenue should payinterest on interest, where there isno inordinate delay in payment ofrefund?” 2.The learned Tribunal, relying upon the earlierdecision of the Hon'ble Supreme Court in the case of SandvikAsia Ltd. Vs. CIT (280 ITR 643) (SC), dismissed the Revenue'sAppeal. 3.LearnedSeniorStandingCounselfortheAppellant/Revenue has submitted before us that the view ofHon'ble Supreme Court in Sandvik Asia Ltd., cited supra, hassince been reversed by the Hon'ble Supreme Court in a laterdecision in the case of CIT Vs. Gujarat Fluoro Chemicals (2013)358 ITR 291 (SC), in which, taking note of the said decision ofSandvik Asia Ltd., as well as the later amendment of law witheffect from 01.04.1989 by insertion of Section 244A of the Act,the Hon'ble Supreme Court has clarified that it is only theinterest provided for under Section 244A of the Act, which maybe claimed by the Assessee on the refunds, and no other interestcan be claimed by the Assessee. Paragraph No. 8 of the saidJudgement of the Hon'ble Supreme Court is quoted below for readyreference:- “8. Further it is brought to ournotice that the Legislature by the Act No. 4of 1988 (w.e.f. 01.04.1989) has insertedSection 244A to the Act which provides forinterestonrefundsundervariouscontingencies. We clarify that it is onlythat interest provided for under the statutewhich may be claimed by an assessee from theRevenue and no other interest on suchstatutory interest.” 4.In view of the very foundation of the order of thelearned Tribunal, namely, the earlier Judgement of the Hon'bleSupreme Court in the case of Sandvik Asia Ltd. having been takenaway by the later decision of Hon'ble Supreme Court in the caseof CIT Vs. Gujarat Fluoro Chemicals, cited above, we remit thematter back to the learned Tribunal to decide the Appeal againin accordance with law, in view of the later decision of theHon'ble Supreme Court and the amendment of law. 5. Accordingly, this Appeal of the Revenue is disposed of,without answering the aforesaid Question of Law. No costs. Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant Registrar To: 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai. Chennai 'D' Bench, Chennai. 2.The Commissioner of Income Tax(Appeals), Chennai. Chennai. 3.The Assistant Commissioner of Income Tax, Company Circle I(1), Chennai. +1cc to Mr.T.Ravikumar, Advocate, S.R.No.39605 GSV(CO) T.C.A.No.439 OF 2010 RRS(26/06/2019)