(Per : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1) By these appeals under section 260A of the Income Tax Act, 1961, the appellant-revenue has challenged the order dated 03.01.2000 passed by the Income Tax Appellate Tribunal, whereby the appeals preferred by the revenue came to be dismissed.
2) While admitting the appeals, this Court, by an order dated 25.9.2000, had formulated the following substantial question of law;
“Whether the Appellate Tribunal is right in law and on facts in directing to allow interest under section 244(1A) on interest till the date of refund and in doing so wrongly applied the ratio of the decision of Gujarat High Court in the case of D.J. Works V. Dy.C.I.T. 195 ITR 227 which was based on the provisions of section 214(1) of the Income Tax Act, 1961?”
3) It is an admitted position between the parties that the controversy involved in the present case stands concluded by a decision of this Court in the case of Gujarat Flourochemicals Ltd. Vs. Commissioenr of Income Tax & Ors., (2007) 210 CTR (Guj) 587, whereby the issue has been decided in favour of the assessee and against the revenue. Under the circumstances, it is not necessary to set out the facts and contentions in detail.
4) Following the above referred decision of this Court, the question is answered in the affirmative. The Tribunal was right in law and on facts in directing to allow interest under section 244(1A) on interest till the date of refund. The appeals are, accordingly, allowed.
(AKIL KURESHI,J.) (HARSHA DEVANI,J.)
Vahid