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2018 (12) TMI 1836 - AT - Income TaxMethod of computation of interest on refund u/s 244A - interest on the unpaid refunds - CIT-A had merely directed the ld AO to calculate the interest u/s 244A of the Act correctly as per law without really getting into the dispute - HELD THAT:- Full amount of refund as determined by the ld AO was not actually granted to the assessee, thereby making the assessee eligible for further interest for the future periods. We find that this aspect had been duly dealt with by the co-ordinate bench of this tribunal elaborately in the case of Union Bank of India vs ACIT [2016 (8) TMI 688 - ITAT MUMBAI wherein the solitary ground taken up by the assessee before this tribunal was with regard to granting lesser amount of interest u/s 244A while computing refund arising as a result of passing impugned order for giving effect to CIT(A)’s order (i.e appeal effect order) was decided in favour of assessee. We are inclined to accept the plea of the assessee. Hence we hold that the assessee would be entitled for interest on the unpaid refunds in accordance with the principle laid out in the aforesaid decision of Mumbai Tribunal in the case of Union Bank of India supra. The ld AO is hereby directed to compute the interest on refund u/s 244A of the Act as per the plea of the assessee. Accordingly, the grounds raised by the assessee are allowed and that of the revenue are dismissed.
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