ORAL JUDGMENT
(PER: HONOURABLE MR. JUSTICE M.R SHAH)
1.0 As common question of law and facts arise in this group of appeals and as such with respect to same assessee but with respect to different assessment years, all these appeals are decided and disposed of by this common judgment and order.
2.0 In all these appeals, the following common substantial question law is framed to be considered by this Court in this group of appeals.
“Whether on the facts and the circumstances of the case, the Appellate Tribunal has substantially erred in holding that interest under Section 244(1A) is admissible on the amount as interest under Section 139(8) & 215 of the Income Tax Act?”
3.0 Heard Ms. Mauna Bhatt, learned advocate for the revenue and Shri B.D Karia, learned advocate for Shri R.K Patel, learned advocate for the assessee.
4.0 Shri B.D Karia, learned advocate for the assessee has vehemently submitted that as such the question in the present Tax Appeals is squarely covered against the revenue by the decision of the Division Bench of this Court in the case of Commissioner of Income Tax v. Gujarat State Warehousing Corporation reported in 256 ITR 596 (Guj) and the decision of the Madras High Court in the case of Commissioner of Income Tax v. Needle Industries Pvt. Ltd. reported in 233 ITR 370 (Madras). It is submitted that considering the fact that the dispute is with respect to period prior to 1.4.1989 and therefore, the provision of Section 244(1A) of the Act would be applicable in respect of the refund of interest levied under Section 139 and 215 of the Act and provision of Section 244 A of the Act would not be applicable as contended on behalf of the revenue.
5.0 Ms. Bhatt, learned advocate for the revenue is as such not in a position to dispute the above and as such is not disputing the above. In the case of Needle Industries Pvt. Ltd. (supra), identical question came to be considered by the Madras High Court and it is held that the assessee is entitled to interest under Section 244(1A) on refund amount of interest levied under Section 139(8) and 215 of the Act and collected in pursuance of an order of assessment which was refunded and therefore, the assessee would be entitled to interest under Section 244(1A) in respect of refund of interest levied under Section 139(8) and 215 of the Act.
6.0 In the case of Gujarat State Warehousing Corporation (supra) the Division Bench of this Court has also aken the similar view, relying upon the decision of the Madras High Court In the case of Needle Industries Pvt. Ltd. (supra).
7.0 Applying the ratio/law laid down by the Madras High Court in the case of Needle Industries Pvt. Ltd. (supra) and the decision of the Division Bench of this Court in the case of Gujarat State Warehousing Corporation (supra), to the facts of the case on hand, the question raised in the present appeals is answered against the revenue. Consequently all the appeals deserves to be dismissed and are accordingly dismissed. No costs.
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