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2022 (8) TMI 1266 - ITAT BANGALOREInterest on refund u/s. 244A - Short grant of interest u/s. 244A - HELD THAT:- This issue stands settled by Hon’ble Supreme Court in case of Sandvik Asia Ltd. [2006 (1) TMI 55 - SUPREME COURT] wherein Hon’ble Court observed as under that in that case Sandvik Asia has refunded the principal, however interest was withheld for a long time. In the present facts of the case, assessee is no doubt eligible for interest on the refund that was withheld till the date of issue of the refund order. Further, in the present facts, the assessee had already received interest on refund u/s. 244A of the Act though it was computed with a shortfall. Interest on interest as available to assessee under newly inserted sub-clause (1A) will have to be analysed in accordance with law. The year under consideration is Assessment Year 2020-21 and therefore interest on interest has to be computed for the shortfall amount that assessee is liable to receive. We therefore remand this issue to the Ld.AO to compute the actual refund along with the interest u/s. 244A and on the shortfall amount that assessee did not receive over and above that was computed by the CPC vide intimation dated 30/03/2021, assessee has to be granted interest on interest under sub-clause (1A) of section 244A of the Act. Grounds raised by the assessee stands partly allowed for statistical purposes.
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