2014 (10) TMI 863

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....aw, the Hon'ble CIT(A) has erred in not directing the learned Assessing Officer to grant interest u/s. 244A on refund due in accordance with law and the current legal position." 2. At the outset it was submitted by Ld. AR that interest under section 244A has not been correctly computed by the AO. Reference in this regard was made to the order passed by the Tribunal in group case of the assessee i.e. in the case of ACIT vs. Tata Power Company Ltd. vide order dated 6/3/2013 in ITA No.6863/Mum/2011 for assessment year 1997-98. In the said case Revenue agitated the direction of Ld. CIT(A) wherein he directed the AO to deduct only tax element from the refund generated earlier excluding interest portion. According to Revenue such direction of ....

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....er of the Ld. CIT(A). We hereby dismiss ground no.1 for the reason that the assessee is entitled for the interest on refund according to the provision of section 244A(1) and Ld. CIT(A) has not given any direction contrary to law. 5.1 As ground no.2, we do not find any justifiable reason to interfere with order passed by the Ld. CIT(A) directing the AO to exclude the interest element of refund earlier granted as the provisions of the I.T. Act do not permit to include interest within refund in the given situation while deducting the amount of refund issued earlier and, therefore, ground no.2 is hereby dismissed. Accordingly, the order of the Ld. CIT(A) is hereby upheld." 2.1 It was further submitted that the said decision given was foll....