AI Drafter 
TaxTMI 
TaxTMI 
2026 (5) TMI 1487
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.... the assessee is against the order of Ld. CIT(A) not giving specific direction the AO to allow interest u/s 244A(1A) of the Act. 3. Facts in brief are that the assessment u/s 143(3) of the Act was framed vide order dated 23.01.2018. As per the assessment order, the amount refundable to the assessee worked out to more than 10% of the net Tax liability and the assessee thus received interest u/s 244A(1) of the Act. Further on account of delay in giving appeal effect to the order of Ld. CIT(A) beyond the timeline as mandated in Section 153(5) of the Act which is approximately 4.5 years, the assessee is also eligible for receiving additional interest @3% per annum u/s 244A(1A) of the Act. The computation of tax payable / refundable calculati....
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....t the same to the assessee. The case of the assessee finds support from the decision of Hon'ble Karnataka High Court in the case of Wipro Ltd. vs. JCIT, Special Range-7, Bangalore reported in [2021] 130 taxmann.com 84 (Karnataka) and the decision of Hon'ble Gujarat High Court in the case of Nima Specific Family Trust vs. ACIT, Circle-5(2) reported in [2018] 100 taxmann.com 262 (Gujarat) wherein the same ratio has been laid by the Hon'ble Karnataka High Court. The operative part of the case of Nima Specific Family Trust (supra) is extracted below: 24. We have noticed that prior to the relevant amendments made in the Act and introduced wef 1st June 2016. there was neither a limit prescription for passing orders giving effect to appel....
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.... compensated for delay by way of additional interest. 26. These provisions are thus remedial in nature and meant to address the issue of inordinate delay in giving effect to the appellate or revisional orders made in favour of the assesses. However, minute examination of these provisions would show that the same were not meant to have retrospective effect. The computation provision for granting such interest provides for two terminal points the beginning point is the end of the period beginning from the date following the date of expiry of time allowed under section (5) of Section 153 and the end point of computing the interest would be the date on which refund is granted. Applying such provisions for the past period would immediat....
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....mer, all the provisions of subsection [IA] of Section 244A as well as sub-section (5) of Section 153 of the Act would apply. In the latter, if harmonious construction approach is not adopted, the Assessing Officer could contend that he is under no obligation to pass order giving effect to the appellate or revisional order, nor would the revenue be liable to pay additional interest even after the time available to the Assessing Officer for passing such order has expired. The legislature could not be expected to have brought about such a situation. Any such interpretation would also restrict the prospective effect of these provisions. In such circumstances, the harmonious construction of the statutory provisions would require that if any orde....
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....emand 50,25,07,707 Less: TDS/TCS 16,45.38,025 Less: Advance Tax Paid 31,85,00,000 Less: Self Assessment Tax Paid on 29.04.2014 7,00,00,000 Less: Self Assessment Tax Paid on 04.07.2019 10,000 Total Tax and Interest Payable/(Refundable) (5,05,40,318) Less: Interest u/s 244A 3,71,29,794 Refer below workings Net Amount Payable/(Refundable) (8,76,70,112) Refund of Rs. 5,05,40,318/- received on 26.04.2024 Calculation of Interest u/s 244A(1) Particulars Amount in Rs. Remarks Refund arising out of self assessment tax paid on 04.07.2019 Refund amount 10,000 Start Date of Interest Computation 04/07/2019 End Date of Interest Computation 26/04/2024 No. of Months 58 Interest Rate [0.5% per month or part of th....