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2020 (2) TMI 1620 - ITAT CHENNAIGrant of interest u/s 244A - refund granted to the assessee - HELD THAT:- The law is very well settled that the assessee is is not entitled for interest on interest. However, the manner in which any refund, which has been granted partly to the assessee is to be adjusted first towards interest due to the assessee, and remaining portion should be adjusted towards the tax due to the assessee. This adjustment, if made, would be just and fair and would also be in consonance with the provisions of section 140A of the Act, which talks about the manner of adjustment of amounts paid by the assessee to the Income 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 244A of the Act. Accordingly, the appeal of Revenue is allowed and Petition under Rule 27 of ITAT Rules preferred by the assessee is allowed.
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