TaxTMI 
TaxTMI 
2021 (7) TMI 1483
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....ing grounds before us: "1. Whether on the facts and in the circumstances of the case and in law, the ld. CIT(A) was correct in holding that the refund issued should first be adjusted against the 244A interest payable and balance towards tax refundable, which in case paid later will be entitled for additional interest u/s 244A. 2. Whether on the facts and circumstances of the case, the ld. CIT(A) was correct in law, in interpreting the provisions of Sec. 244A of the Income Tax Act, 1961. 3. The appellant craves to amend, alter, and delete any of the aforesaid grounds and add any additional grounds either before or at the time of hearing." 2. Briefly stated, the assessee which is engaged in the business of bankin....
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....fore the Tribunal. The Tribunal vide its order dated 02.08.2017 in ITA No. 2567/Mum/2017, dated 02.08.2017 allowed the appeal of the revenue for statistical purposes and restored the matter to the file of the A.O for deciding the same afresh in light of the decision of the Hon'ble High Court of Delhi in the case of India Trade Promotion Organization Vs. CIT, (2014) 361 ITR 646 (Del). 5. In the course of the set-aside proceedings, it was observed by the A.O that the claim of the assessee i.e the refund paid should be first adjusted against the interest and thereafter the balance amount of refund should be adjusted against the principal amount was not directly answered by the Hon'ble High Court of Delhi in the case of India Trade Promotion....
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.... the observations of the Tribunal in its order passed in ITA No. 629/Mum/2018, dated 10.04.2019 in the assessee's case for A.Y. 2003-04, the CIT(A) directed the A.O to follow the said decision of the Tribunal and re-compute the interest due u/s 244A and also calculate the interest as per Rule 119A of the Income Tax Rules, 1962. 7. The revenue being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. It is the grievance of the revenue that the CIT(A) had erred in concluding that the refund issued should first be adjusted against the interest payable u/s 244A and the balance amount be adjusted against the tax refundable, for the reason, that such adjustment would result to an additional interest u/s 244A of t....
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....he interest due u/s 244A of the Act and also calculate the interest as per Rule 119A of the Income Tax Rules, 1962, observing as under: "5. The next issue in this appeal of assesses is against the order of CIT(A) in not granting interest under section 244A of the Act on interest portion of refund due For this assessee has raised the following ground No 2:- "2. On the facts and in the circumstances of the case and in law the learned DCIT has erred m non- granting of interest u/s. 244A of the Income-tax Act. 1961 on interest portion of refund one and the Hon'ble CIT(A) has erred in confirming the same The learned DCIT be directed to grant interest u/s 244A of Ih9 Income-tax Act, 1961 on interest portion of refund due and....
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.... should be first adjusted against the interest portion that has become due and then the remaining amount, if any, should be adjusted against the tax portion of me refund that has become due in support of his contentions the Ld. A.R planed reliance on the decision rendered by the Tribunal in the assessee's own case in ITA N0. 5444 to 5446/Mum/2013 dated 22.12.2014 and also the decision rendered by the Tribunal in the case of Union Bank of India (ITA No. 571 &5741/Mum/2013 dated 23.6.2014) 6. We heard the parties on this issue. Since it is matter involving computation of eligible amount of interest u/s 244A of the Act. We are of the view that this issue requires fresh examination of the end of me AO. In the decisions relied upon ....