Tribunal Directs Correct Interest Calculation on Delayed Tax Refund, Prioritizing Fairness and Equity in Refund Adjustments.

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....The assessee claimed additional interest u/s 244A(1A) for the delayed refund. The AO incorrectly adjusted the refund against the tax component instead of first adjusting it against the interest component. The Tribunal held that the refund should be first adjusted against the interest component, following the principles of equity and fairness, as applied when collecting taxes. The Tribunal relied on the decisions in Tata Sons Pvt. Ltd. and Nirma Ltd., emphasizing consistent and fair treatment by the revenue. The AO was directed to re-compute the interest u/s 244A by first adjusting the refund against the interest component and then against the tax component, and grant additional interest u/s 244A(1A) for the period from 01.06.2016 to 05.07.2017. The assessee's appeal was partly allowed.....