The court emphasized the importance of referring the matter to a larger Bench when there is a difference in opinion with a previous judgment.

ORDER :

Leave granted.

2. We have heard the learned counsel for the parties.

3. The issue pertains to grant of interest under Section 244 A of the Income Tax Act which is decided by the High Court vide impugned judgment against the assessee. The impugned judgment of the High Court reveals that another judgment of the Coordinate Bench of the same High Court in the case of Commissioner of Income Tax v. Sutlej Industries Ltd., (2010) 325 ITR 331 (Delhi) was cited wherein the view taken was that in such circumstances the assessee would be entitled to interest under Section 244 A of the Income Tax Act on the refund of the self-assessment tax. The High Court further did not agree with the aforesaid view and made the following observation:

"35. Having found the position of law as indicated above, we express, with respect, our inability to subscribe to, or follow, the view taken by the other Division Bench of this court in the case of Commissioner of Income Tax v. Sutlej Industries Ltd."

4. It is clear from the above that in the impugned judgment, the Bench has differed with the earlier view expressed by the Coordinate Bench. In the circumstances, the appropriate course of action was to refer the matter to the larger Bench and we fail to understand why it was not done.

5. We are informed that subsequently in the case of Sutlej Industries Ltd. v. Commissioner of Income Tax (ITA Nos. 493/2003 & 120/2004) pending before the High Court, the High Court has referred the matter to a larger Bench. In these circumstances, we set aside the impugned judgment of the High Court and remand the appeal back to the High Court for its afresh decision along with ITA Nos. 493/2003 & 120/2004 by a larger Bench.

6. The appeal is disposed of accordingly.