The Question Pertains To Interest Under Section 244A Of The Income Tax Act, 1961 ['The Act' For Short]. We Notice That Such Issue Came Up For Consideration Befo v. Commissioner Of Income Tax Income Tax Act, 1961 ['The Act' For Short]. We Notice That Such Issue Came Up For Consideration Before Supreme Court In Case Of K. La

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 931 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX VADODARA 1VersusGUJARAT STATE FERTILIZERS AND CHEMICALS LTD==========================================================Appearance:MR.VARUN K.PATEL(3802) for the PETITIONER(s) No. 1MR J P SHAH, SR ADV WITH 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. Leave to amend. 2. Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 13.12.2017 raising following question for our consideration:Appellate Tribunal dated 13.12.2017 raising following question for our consideration: “Whether on the facts and in circumstances of the case, the learned ITAT has erred in law and on facts in granting interest u/s. 244A on refund of the interest charged u/s. 234B of the Income Tax Act?” 3. The question pertains to interest under section 244A of the Income Tax Act, 1961 ['the Act' for short]. We notice that such issue came up for consideration before Supreme Court in case of K. Lakshmansa and Co. vs. Commissioner of Income Tax Income Tax Act, 1961 ['the Act' for short]. We notice that such issue came up for consideration before Supreme Court in case of K. Lakshmansa and Co. vs. Commissioner of Income Tax and anr reported in 399 ITR 657 in which following observations were made: “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 clear that the right to interest is parasitical. The right to claim refund is automatic once the statutory provisions have been complied with.” 4. In the result, Tax Appeal is dismissed. (AKIL KURESHI, J) JYOTI V. JANI (B.N. KARIA, J)