TMI Blog2020 (2) TMI 1620X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Department. We find lot of force in the Petition under Rule 27 of ITAT Rules filed by the assessee, which deserve to be admitted and the prayer sought for thereon deserves to be accepted as such. We accordingly direct the Ld. A.O.to first adjust the part of the refund granted to the assessee towards interest under Section 244A of the Act due to the assessee and the remaining portion if any, shall be adjusted towards the tax portion due to the assessee. This would be in spirit and in consonance with the provisions of section 140A when taxes are paid by the assessee to the Income Tax Department. The same pattern of Section 140A should be followed by the Income Tax Department while granting refund including interest under Section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue in the light of Hon ble Supreme Court decision in the case of C.I.T Vs. Gujarat Fluoro Chemicals reported in 358 ITR 291(SC) and in accordance with law. Hence, the present appeal is to be decided pursuant to the directions of the Hon ble Madras High Court. Thereafter, the assessment originally revised on 16.11.1992 was further revised to give effect to the order of the Tribunal in I.T.A. No. No.32/Mds./1993 dated 06.02.2003. Accordingly, the Ld. A.O framed the assessment giving effect to the order of the Tribunal on 04.01.2008 by determining the total income at ₹86,74,388/- which ultimately resulted in refund of tax due to the assessee. Since final assessment resulted in refund, the assessee was entitled for interest under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e balance amount should be adjusted against the tax to be refunded. B) Interest under Section 244A should be computed on the outstanding tax as adjusted in the manner specified in the grounds above. C) Under Section 140A, the amount paid as self assessment tax is first adjusted against the interest payable by the assessee and only the balance is adjusted against the tax payable. D) This is the manner of adjustment prescribed by the Income Tax Act under Section 140A and the same manner of adjustment should also be applied for calculating interest under Section 244A. We find lot of force in the Petition under Rule 27 of ITAT Rules filed by the assessee, which deserve to be admitted and the prayer sought for thereon deserves to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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