Tribunal grants appeal, orders interest payment on delayed refund under section 244A, remands MAT credit refund issue.

The Tribunal allowed the appeal for statistical purposes, directing the Assessing Officer to pay interest under section 244A for the delayed refund amount. The Tribunal also remanded the issues related to the additional ground and MAT credit refund interest for further adjudication by the CIT(A).

---

---

Issues:
1. Grant of interest under section 244A for delayed payment.
2. Admissibility of additional ground regarding interest on refund.
3. Grant of interest under section 244A on MAT credit refund.

Issue 1: Grant of interest under section 244A for delayed payment:
The appellant contested the denial of interest under section 244A by the Assessing Officer for delayed refund payment. The Assessing Officer had adjusted the refund against demands for different assessment years. The appellant sought interest on the delayed refund amount, citing erroneous computation by the Assessing Officer. The CIT(A) rejected the claim, considering the case not falling under exceptional circumstances like the Sandvik Asia case. The appellant argued for interest based on Supreme Court rulings. The Tribunal, referencing the Sandvik Asia case, held that the appellant was entitled to interest under section 244A for the delayed refund amount, rejecting the CIT(A)'s view that the case was not exceptional. The Tribunal directed the Assessing Officer to pay interest as per law.

Issue 2: Admissibility of additional ground regarding interest on refund:
The appellant raised an additional ground before the CIT(A) regarding interest on refund due to the set-off of MAT credit. The CIT(A) rejected the additional ground, deeming it a legal issue that arose post-assessment. The appellant contended that legal grounds can be raised at the appellate stage if facts are on record, citing relevant Supreme Court decisions. The Tribunal agreed with the appellant, citing precedents, and directed the CIT(A) to admit and adjudicate the additional ground.

Issue 3: Grant of interest under section 244A on MAT credit refund:
The appellant's claim for interest under section 244A on the MAT credit refund was not addressed by the CIT(A) due to the rejection of the additional ground. The Tribunal, in line with its decision on the admissibility of the additional ground, restored this issue to the CIT(A) for fresh adjudication. The Tribunal directed the CIT(A) to decide on the grant of interest on the MAT credit refund after providing a hearing to the appellant.

In conclusion, the Tribunal allowed the appeal for statistical purposes, directing the Assessing Officer to pay interest under section 244A for the delayed refund amount and remanding the issues related to the additional ground and MAT credit refund interest for further adjudication by the CIT(A).

---