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2022 (1) TMI 1059 - ITAT MUMBAIDisallowance of interest u/s. 244A - whether CIT(A) erred in confirming the order of the learned AO in not allowing the interest u/s. 244A upto the date of issue of refund cheque in terms of binding CBDT circular No. 20D (XXII-22) dated 20.08.1968 wherein instructions have been given for calculating interest upto the date of issue of refund voucher - HELD THAT:- When we examine the provisions contained under section 244A of the Act, it has a categoric mandate that where refund of any amount becomes due to the assessee, he shall be entitled to receive, in addition to the refund amount, simple interest calculated in the manner prescribed in section 244A of the Act itself. Since the provisions contained under section 244A of the Act has no ambiguity whatsoever the assessee is entitled for the interest on its refund upto the date of issuance of the refund voucher. This issue has already been examined and decided by the coordinate Benches of the Tribunal in favour of the assessee that assessee is entitled for interest on its refund upto the date of issuance of refund voucher in cases cited as Indo Gulf Corporation Ltd [2017 (1) TMI 1779 - ITAT MUMBAI], [2011 (7) TMI 1322 - ITAT LUCKNOW] and [2019 (9) TMI 1626 - ITAT MUMBAI] and and Grasim Industries Ltd[2022 (1) TMI 955 - ITAT MUMBAI] We are of the considered view that Ld. CIT(A) has erred in not granting the interest to the assessee on its refund upto the date of issuance of the refund voucher otherwise admissible as under section 244A of the Act and as such impugned orders under appeals are not sustainable in the eyes of law, hence set aside. AO is directed to compute and grant the interest on the tax refund due to the assessee for A.Y. 2012-13 & 2013-14 upto the date of issuance of refund voucher in accordance with the provisions contained under section 244A of the Act. Resultantly, both the appeals filed by the assessee are allowed.
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