Sandvik Asia Limited V/s. CIT (OSD)- ITAT Pune – Interest on the refund is really a part of the refund and interest and refund are not two different things. When the Income-tax Officer has passed the order under section 154 of the Act without granting interest due to the assessee under section 244[1A] of the Act, he has reduced the refund due to the assessee. We are not able to accept the view that clause [f] of sub-section [1] of section 246 should be limited only to the case where the refund was granted earlier but was reduced by an order passed under section 154 of the Act.
Since we are of the view that the interest forms part of the refund and where the interest is not granted in an order passed under section 154 of the Act, the order in substance and effect meant that the Income-tax Officer has passed an order under section 154 of the Act reducing the refund. The decision of the Madhya Pradesh High Court also proceeds on the basis that an order not granting refund is referable to section 237 of the Act and since the interest forms part of the refund the order refusing to grant interest is relatable to section 237 of the Act and it is appealable. Thirdly, where there is a total denial by the Revenue to grant interest on the refund due, on the basis of the decision of the Andhra Pradesh High Court, an appeal provisions should be construed in a reasonable manner and viewed in any manner, we are of the view that the order of the Income-tax Officer refusing to grant interest due to the assessee is an appealable order under section 246 of the Act
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE
BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM
ITA No. 1420/PN/2005- Assessment Year : 1997-98
Sandvik Asia Limited V/s. Commissioner of Income Tax (OSD)
Assessee by : Shri J.D. Mistri
Revenue by : Shri Dheeraj Kumar Jain
Date of Hearing : 13-10-2015
Date of Pronouncement : 21 -10-2015
ORDER
