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2023 (10) TMI 1225 - AT - Income TaxComputation of the interest on refund u/s 244A - Adjustment of refund already granted first against the interest amount and thereafter adjust the balance against the tax amount refundable to the assessee - HELD THAT:- As decided in own case [2019 (6) TMI 1707 - ITAT MUMBAI] since the statute itself has already prescribed a particular method of adjustment in explanation to section 140A(1), then justice, fairness, equity and good conscience demands that same method should be followed while making adjustment for refund of taxes, especially when no contrary provision has been provided - we find that the judicial proprietary demands that order of the Tribunal of earlier years must be followed and therefore we direct the AO to re-compute the amount of interest u/s. 244A 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. Thus, with these directions, the appeal of the assessee is allowed The assessee would be entitled for interest on the unpaid refunds in accordance with the principle laid out in the aforesaid decision of Union Bank of India [2016 (8) TMI 688 - ITAT MUMBAI] AO is hereby directed to compute the interest on refund u/s 244A of the Act as per the plea of the assessee. Accordingly, the grounds raised by the assessee are allowed and that of the revenue are dismissed.
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