Tax Tribunal: Refunds Must Prioritize Interest Payment, Balance Applied to Tax; Aligns with Section 140A(1) Principles.

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....The Income Tax Appellate Tribunal held that the refund granted to the assessee should be first adjusted against the correct amount of interest due, and the remaining portion should be adjusted against the balance tax. This principle should be applied while granting refunds, similar to the principle applied while collecting tax u/s 140A(1). The Tribunal observed that there is no specific provision u/s 244A regarding the adjustment of refunds for computing interest payable to the assessee. However, it would be just and fair to apply the same principle as in tax collection. Relying on consistent decisions of coordinate Benches, the Tribunal directed the Assessing Officer to compute the interest u/s 244A as claimed by the assessee in the detailed working, by first adjusting the interest component and then the taxes. The assessee's appeal was allowed.....