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2021 (8) TMI 922 - AT - Income TaxRectification of mistake u/s 154 - debatable issue - Granting short interest u/s 244A - not adjusting the refund granted first towards the interest receivable and the balance remaining against the tax amount receivable by the assessee - HELD THAT:- Adjustment of refund issued earlier has to be adjusted against the interest and only thereafter against the principal amount of tax. The issue is squarely covered by the various decisions of Union Bank of India [2016 (8) TMI 688 - ITAT MUMBAI], DCIT vs. State Bank of Saurashtra [2017 (10) TMI 1252 - ITAT MUMBAI], Bank of Baroda vs. DCIT [2018 (12) TMI 1836 - ITAT MUMBAI] and DCIT vs. Peerless General Finance & Investment Co. Ltd. [2017 (8) TMI 237 - ITAT KOLKATA] - Thus a refund issued to the assessee on various dates has to be first adjusted against the interest due on the income tax and thereafter against the principal amount. Accordingly, we set aside the order of Ld. CIT(A) and direct the AO to make adjustment of refund as indicated above. - Decided in favour of assessee.
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