2012 (12) TMI 1067 - AT - Income Tax

Summary

Issues involved: Appeal against the order of ld. CIT(A) u/s 154 for granting interest u/s 244A till the date of issue of refund.

Summary:
1. Issue of Granting Interest u/s 244A: The A.O. did not credit the amount of &8377; 1,30,00,000/- while working out the refund due to the assessee. Upon application u/s 154, the A.O. allowed the credit of this amount after verification with banking authorities. However, interest u/s 244A on this refund till the date of refund was not granted. Ld. CIT(A) directed the A.O. to grant interest u/s 244A on the refund issued till the date of the refund order. The ITAT upheld this decision, dismissing the Revenue's appeal.

2. Cross Objection: The assessee's cross objection in support of ld. CIT(A)'s order became infructuous due to the decision in the Revenue's appeal and was consequently dismissed as infructuous.

3. Final Decision: The ITAT dismissed both the Revenue's appeal and the assessee's cross objection, upholding the direction to grant interest u/s 244A till the date of the refund order.