https://www.taxtmi.com/caselaws?id=761512 ITAT Mumbai allowed the assessee's appeal regarding adjustment of refund and interest calculation under section 244A. The Tribunal directed that refund granted should first be adjusted against the interest component, then against principal/tax component. Any shortfall thereafter should be considered for computing further interest payable under section 244A until the date of refund grant. The Tribunal relied on precedents from Union Bank of India and Grasim Industries Ltd cases, rejecting Revenue's argument that this methodology awards interest on interest. The impugned order was set aside. en-us Fri, 08 Nov 2024 00:00:00 +0530 Mon, 11 Nov 2024 10:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761512 ITAT Mumbai allowed the assessee's appeal regarding adjustment of refund and interest calculation under section 244A. The Tribunal directed that refund granted should first be adjusted against the interest component, then against principal/tax component. Any shortfall thereafter should be considered for computing further interest payable under section 244A until the date of refund grant. The Tribunal relied on precedents from Union Bank of India and Grasim Industries Ltd cases, rejecting Revenue's argument that this methodology awards interest on interest. The impugned order was set aside. Case-Laws Income Tax Fri, 08 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761512