COMMISSIONER OF INCOME TAX Vs. KARNATAKA BANK LTD

JUDGEMENT

(1.) THE Revenue has preferred these three appeals challenging the order passed by the Tribunal directing payment of interest on the excess TDS amount paid on behalf of the assessee.

(2.) THESE three appeals relate to three assessment years and the assessee is common. Therefore, all the three appeals are taken up for consideration together and disposed of by this common order.

(3.) THE AO while passing the rectificatory order under S. 154 of the Act allowed credit in respect of TDS of Rs. 1,76,168. However, he rejected the claim of the appellant for allowance of interest under ss. 214 and 244A of the Act. One of the reason for the AO to reject the interest was, that the assessee's earlier application on the same ground for grant of interest on refund was rejected as barred by limitation which order was also confirmed in appeal. In those circumstances, aggrieved by the rectificatory order rejecting the request of interest, the assessee preferred an appeal before the CIT(A), Mangalore. The CIT(A) held that the appellants are not entitled to interest under S. 214 of the Act, whereas the appellants' claim for grant of interest under S. 244A was granted. Aggrieved by the same, the assessee preferred an appeal before the Tribunal. The Tribunal also has held that the assessees are not entitled to interest under S. 214 of the Act, whereas, are entitled to interest under S. 244A of the Act. Aggrieved by the said orders, Revenue is in appeal.