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2014 (3) TMI 289 - ITAT MUMBAIInterest u/s 244A of the Act - Whether the CIT(A) has erred in confirming the order u/s 154 passed by AO in which AO had not granted interest on interest u/s 244A of the Act – Held that:- Section 244A provides for interest on refunds under various contingencies and clarified that interest provided for under the statute which may be claimed by an assessee from the Revenue and no other interest on such statutory interest - The decision in CIT V/s Gujarat Fluoro Chemicals 2013 (10) TMI 117 - SUPREME COURT] followed. The assessee is entitled for compensation by way of interest in case of delay on the refund is only the payment of statutory interest and not the interest on interest on the refund due to the assessee - the assessee is entitled only for simple interest - If the interest is calculated and becomes part of the amount of tax to be refunded to the assessee and in case there is a delay in payment thereof, the assessee may be entitled to get interest on the said amount due from the department which has been calculated and ascertained and in case the interest has not been calculated and merely there is a delay in payment of the refund, the assessee is entitled to interest as per the provisions of Act i.e. section 244A of the Act and not interest on interest – thus, the order of the CIT(A) upheld – Decided against Assessee.
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