The appeal was made regarding the incorrect charge of interest...

The appeal was made regarding the incorrect charge of interest u/s 234B of the Act in an order passed u/ss 254, 143(3), and 153A. The issue was whether the assessee should receive credit for taxes paid after the assessment year but before the final determination of demand by the AO for calculating interest u/s 234B. The bench found that the assessee is entitled to relief of interest if tax is paid before total income determination or regular assessment. The AO was directed to give credit for taxes paid while computing interest u/s 234B. The bench also ruled that if the refund amount exceeds 10% of the tax determined, interest u/s 244A should be paid. The assessee was found eligible for interest u/s 244A based on undisputed facts, resulting in a refund of Rs. 2,38,31,324, exceeding 10% of the tax demand. The appeal grounds raised by the assessee were allowed by the bench.

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