2025 (6) TMI 970

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....ricting claim of non- grant of interest u/s 244A of the Income-Tax Act, 1961 ('the Act') to Rs. 16,97,762 as against claim made of Rs. 45,41,792 (calculated upto 31.12.2024). 2. failed to appreciate that any refund received shall first be adjusted towards the interest receivable by the Appellant and thereafter, the balance, shall be adjusted against the principal amount of refund." Brief facts of the case are as under: 2. The assessee is filed its return of income on 29/11/2012, which has been revised on 27/11/2013, declaring total loss under normal provisions at Rs. 35,86,04,360. The return of income was scrutinized u/s. 143(3) of the Act and draft assessment order was passed on dated 16/-3/2016. The assessee filed o....

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....t of the order passed by this Tribunal, as per section 153(5) of the Act. It was submitted that, the Ld.AO passed the OGE on 22/06/2024 which is inadvertently dated 06/12/2023. The assessee submitted that, it was entitled to additional interest u/s.244(1A) of the Act, for period of 814 of days from the end of the time line u/s.153(5) till the date of grant of such refund. 3.3. The Ld. CIT(A) while adjudicating both the issues, allowed the claim of assessee only to on the additional interest u/s.244A(1)(a) of the Act. Aggrieved by the order of the Ld.CIT(A) the assessee is in appeal before this Tribunal. 4. The Ld.AR at the outset submitted that, the only issue that is to be considered is in respect of the method adopted by the Ld.A....

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....o the extent that the amount paid shall first be adjusted towards the interest payable and the balance if any shall be adjusted towards the tax payable. Similar view was expressed by Coordinate Bench of this Tribunal in case of Union Bank of India vs. ACIT reported in (2016) 72 taxmann.com 348. The relevant extract of this decision is under: ""3.8 Thus, from the perusal of the above, it is clear that where the amount of tax demanded is paid by the assessee then it shall first be adjusted towards interest payable and balance if any whatever tax payable. Now, if we go through section 244A, we find that no specific provision has been brought on the statute with respect to adjustment of refund issued earlier for computing the amount of....

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....the case of India Trade Promotion Organisation (supra)" 5.1. In the decision relied by the Ld.AR in case of Tata Sons Pvt.Ltd. (supra) on identical issue this Tribunal observed as under: "8. The ratio laid down is that the amount of interest u/s. 244A is to be calculated by first adjusting the amount of Tefund already granted towards the interest component and balance left if any shall be adjusted towards the tax component. Therefore we hold that the manner in which the assessing officer has adjusted the refund is not correct and that the assessee would be entitled for interest on the unpaid refunds in accordance with the principle laid out in the aforesaid decision of Tribunal. The Id AR during the course of hearing submitted a....