GUJARAT FLOUROCHEMICALS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AS the present matter is directed by the Apex Court to be heard at the earliest, we have taken up the matter and heard the learned Counsel appearing for both the sides for final disposal.

(2.) WE may briefly record that the petitioner has preferred the petition under Article 226 and Article 227 of the Constitution of India for various reliefs, inter alia, for appropriate direction to the respondents to award compensation by way of an interest on the amount of refund for the period from July 1, 1987 to November 13, 1990. This petition was earlier finally heard and decided by the Division Bench of this Court (Coram: J. M. Panchal and Smt. Abhilasha Kumari, J.J.) vide judgement dated 3.7.2007 and this Court, for the reasons recorded in the order, more particularly based on the decision of the Apex Court in the case of Sandvik Asia Limited Vs. Commissioner of Income Tax and Others, 2006 280 ITR 643 , had issued the following directions: -

(3.) THE aforesaid shows that this Court, based on the above referred decision of the Apex Court in the case of Sandvik Asia Limited Vs. Commissioner of Income Tax and Others directed the respondents to grant compensation by way of interest at the rate of 9% p.a., to the petitioner on the amount of refund for the period from July 1, 1987 to November 13, 1990 and further directed to pay interest at the rate of 9% on the amount of interest, meaning thereby simple interest at the rate of 9% p.a., and further interest at the rate of 9% on the amount of simple interest.