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2023 (11) TMI 193 - AT - Income TaxAdjustment of refunds granted for computing of interest u/s 244A - manner of adjusting the refund - assessee submitted before the CIT(A) that AO had granted interest u/s 244A by artificially splitting the refund granted into interest and tax and adjusting the same from interest and tax refund resulting in reduced interest u/S 244A being granted - HELD THAT:- The amount of interest u/s. 244A is to be calculated by first adjusting the amount of refund already granted towards the interest component and balance left if any shall be adjusted towards the tax component. Accordingly we hold that the manner in which the assessing officer has adjusted the refund is not correct and that the assessee would be entitled for interest on the unpaid refunds in accordance with the principle laid out in the aforesaid decision of Tribunal. AO is directed to compute interest under section 244A as per the claim of the assessee after giving a proper opportunity of being heard.
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