2014 (10) TMI 863 - AT - Income Tax

Short Grant of Interest u/s. 244A - Held that - CIT(A) has erred in not accepting the submissions of the assessee and, therefore, the order passed by Ld. CIT(A) should be set aside and AO may be directed to recalculate the interest under section 244A of the Act in accordance with the proposition accepted by the Tribunal in the group case. - Decided in favour of assessee for statistical purposes

Summary

Issues involved:
- Short grant of interest u/s. 244A

Analysis:
The appeal was filed against an order passed by the Ld. CIT(A-20 Mumbai for the assessment year 1990-91 regarding the short grant of interest under section 244A. The appellant contended that the interest was not correctly computed by the Assessing Officer (AO) and referred to a previous Tribunal order in a group case. The Revenue argued that the direction of the Ld. CIT(A) to deduct only the tax element from the refund excluding the interest portion was contrary to law. The Tribunal dismissed the ground, stating that the assessee is entitled to interest on the refund as per section 244A(1) and that the Ld. CIT(A) did not give any direction contrary to the law. The Tribunal upheld the order of the Ld. CIT(A) in this regard.

Regarding the calculation of interest for the assessment year 1990-91, the appellant submitted that the AO calculated the tax incorrectly, contrary to a previous Tribunal decision in the same group case. The appellant provided a detailed calculation of the interest in accordance with the Tribunal's position. The Tribunal, after considering the submissions, directed the AO to recalculate the interest in line with the previous Tribunal decision. The appellant's ground was considered allowed for statistical purposes, and the order was pronounced accordingly on 22/10/2014.