Additional refund interest under section 244A(1A) applies when the consequential order is delayed beyond the statutory time limit.

Section 244A(1A) provides additional compensatory interest where the Assessing Officer fails to pass the consequential order giving effect to an appellate order within the prescribed time under section 153(5). Here, the refund interest under section 244A(1) had already been granted, but the appellate-effect order was delayed beyond the statutory period. The delay triggered entitlement to additional interest at 3% per annum from the expiry of the permissible time until the refund was actually issued. The Assessing Officer was therefore required to verify the assessee's calculation and grant the additional interest.

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Issues: Whether the assessee was entitled to additional interest under section 244A(1A) of the Income-tax Act, 1961 for the delay in passing the order giving effect to the appellate order, and whether the Assessing Officer was required to verify and grant such interest.

Analysis: The assessee had already received refund interest under section 244A(1), but the order giving effect to the appellate order was passed beyond the time prescribed under section 153(5). The statutory scheme treats section 244A(1A) as compensatory and deterrent in nature, providing additional interest at 3% per annum where the Assessing Officer fails to pass the consequential order within the prescribed time. On the facts, the delay extended beyond the statutory period, and the calculation furnished by the assessee showed entitlement to additional interest from the expiry of the permissible time until the refund was actually granted. The cited High Court decisions supported the view that the assessee is entitled to such additional interest where the statutory timeline is breached.

Conclusion: The assessee was entitled to interest under section 244A(1A) of the Income-tax Act, 1961, and the Assessing Officer was directed to verify the calculation and grant the same.

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