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Section 244A of the Income-tax Act, 1961 - Refunds - Interest on [Assessment year 1994-95] [In favour of revenue] CIT v. Lakshmansa & Co. [2010] 228 CTR 427 (Kar.) Assessee is not entitled to interest under section 244A on amount of interest paid under sections 234A, 234B and 234C which is waived by Settlement Commission. M.V. Seshachala for the Appellant . Ashok A. Kulkarni for the Respondent. JUDGMENT K.L. Manjunath, J. : The Revenue has come up in this appeal challenging the order passed by the Tribunal, Bangalore Bench, in ITA No. 728/Bang/2000 dt. 25th March, 2004, wherein the Tribunal has confirmed the order passed by the CIT(A), Bangalore, dt. 30th Aug., 2000 raising the following substantial questions of law : "1. Whether the appellate authorities were correct in holding that the assessee was entitled to interest under s. 244A of the Act on the amount of interest paid under ss. 234A, 234B and 234C of the Act which was waived in accordance with Board notification dt. 23rd May, 1996 issued under s. 119 of the Act by the Settlement Commission ? 2. Whether, the appellate authorities have jurisdiction to entertain statutory appeal under the provisions of the IT Act against the intimation passed by the AO/Dy. CIT declining to grant interest under s. 244A of the Act ?" 2. The facts leading to this case are as hereunder : The assessee is a partnership firm. For the asst. yr. 1994-95, the return of income was filed. The order of assessment was completed and interest under ss. 234A, 234B and 234C of the IT Act (for short hereinafter referred to as 'the Act') was levied. Aggrieved by the levy of interest under the above provisions, the assessee filed an application before the Settlement Commission requesting the Settlement Commission to waive off the interest on the ground it causes hardship to him. The Settlement Commission waived the interest levied by the AO in order to mitigate the hardship as pleaded by the assessee. Pursuant to the order of the Settlement Commission, the Dy. CIT gave effect to the order and passed an order to refund the interest collected under ss. 234A, 234B and 234C of the Act by his order dt. 25th April, 2000. While passing the order…

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