: 1 : IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX APPEAL NO.744 OF 2007 TAX APPEAL NO.744 OF 2007 TAX APPEAL NO.744 OF 2007 The Commissioner of Income-Tax, . City - VI, Mumbai ...Appellant V/s. Grasim Industries Ltd., Mumbai ...Respondent Mr.A.D. Kango, Advocate, for the Appellant. Mr.J.D. Mistry, Advocate, i/b. Dave & Girish, for the Respondent. CORAM CORAM CORAM : DR. S. RADHAKRISHNAN & : DR. S. RADHAKRISHNAN & : DR. S. RADHAKRISHNAN & A.V. A.V. A.V. NIRGUDE, JJ. NIRGUDE, JJ. NIRGUDE, JJ. DATE DATE DATE : 3RD JULY, 2008. : 3RD JULY, 2008. : 3RD JULY, 2008. P.C. P.C. P.C. : : : . Heard the learned Counsel for the Appellant and the learned Counsel for the Respondent. 2. By the above Appeal, the following substantial question of law sought to be raised :- (a). Whether on the facts and in the circumstances of the case and in law, the Hon’ble Tribunal is correct in allowing the interest on interest u/s. 244(1A) of the Act on an amount of Rs.35,52,966/- payable to the assessee? : 2 : 3. We have also perused the Tribunal’s order dated 24th October, 2001 wherein paragraph 5 reads as under :- "5. The second issue relates to the interest u/s. 244(1A), on the refund of Rs.35,52,966/- accruing as a result of the appellate order for the period from October 1983 to March, 1990. Here also the CIT(A) rejected the assessee’s claim following the order of the Tribunal cited supra. However, by order dated 29.4.93 in M.A. No.74/B/93, the Tribunal has rectified its order and has held, following the judgment of the Hon’ble Bombay High Court in the case of Cynamid India Ltd. Vs. K.N. Anantharama Ayyar & Ors. (Writ Petition No.529 of 1982) that the amount of advance tax lost its character or identity on completion of regular assessment and therefore the assessee would be entitled to interest u/s.244(1A). The judgment of the Supreme Court in the case of Modi Industries Ltd. (216 ITR 759) is also in favour of the assessee. Therefore, respectfully following the aforesaid judgments, we uphold the assessee’s claim for interest u/s.244(1A)." : 3 : 4. We have also perused the Grounds of Appeal in the Appeal filed by the Respondent-assessee. Even the grounds as well as the aforesaid paragraph 5 clearly indicate that the Tribunal was only concerned with the grant of interest under Section 244(1A) of the Income Tax Act. In fact no issue was raised with regard to the interest on interest and the Tribunal has not granted the interest on interest. The aforesaid question of law is misconceived. The Appeal is devoid of merits. Hence the same stands dismissed. [A.V. [A.V. [A.V. NIRGUDE, J.] [DR. S. RADHAKRISHNAN, J.] NIRGUDE, J.] [DR. S. RADHAKRISHNAN, J.] NIRGUDE, J.] [DR. S. RADHAKRISHNAN, J.]