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2012 (11) TMI 810 - AT - Income TaxInterest on delayed refund – Period of for which interest granted - Assessee contended that the interest of refund should be allowed from the 1st of April of the F.Y. in which TDS was deducted, i.e. from 1-4-1984 and not from the date of regular assessment order - AO granted interest u/s 244(1)A on the refund from the date of regular assessment order till the date of granting of the refund - Held that:- As the contention of the assessee is not correct, that the judgment in case of Sandvik Asia Ltd. (2006 (1) TMI 55 - SUPREME COURT), has in any manner diluted the ratio and the proposition of law laid down in case of Modi Industries Ltd.( 1995 (9) TMI 324 - SUPREME COURT). In the case of Sandvik Asia Ltd. (supra), the Hon’ble Supreme Court, was besieged with the issue of withholding of refund without sanction of law. Issue decides in favour of assessee Interest on refund - Assessee contended that interest should be paid on the amount of refund delayed after the expiry of 3 months from date of ITAT’s order till the date of actual granting of refund – AO argued that the interest should have to be paid in after the expiry of three months from the date of ITAT order, till the date of passing of the order giving effect of the ITAT and further interest on balance amount of refund shall become payable from the date of issue of the refund - Held that:- As the view taken by some ITO that the date of the assessment order is to be taken as the “date of the order granting the refund” is not correct. Thus, in cases where interest is payable by the Central Government to assessee u/s 243, such interest is to be calculated upto the date of issue of the refund voucher. Therefore, assessee is entitled for interest for the amount of refund and interest withheld from the period after the expiry of 3 months from the date of order till the date of actual grant of refund voucher. Issue decides in favour of assessee.
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