2011 (3) TMI 1822 - AT - Income Tax

Summary

Issues Involved: The issue involves the grant of interest u/s 244A from a specific period, as disputed by the assessee.

Grant of Interest u/s 244A: The appeal concerns the direction of the CIT(A) regarding the grant of interest u/s 244A. The dispute revolves around the period for which the interest should be sanctioned. The CIT(A) directed the AO to grant interest from April 2003 to the date of refund, which was received on 9th September 2005. The CIT(A) had already given directions to verify the facts and grant interest accordingly. The Hon'ble Bombay High Court's decision in a similar case emphasized the importance of determining the starting date and the period for which interest should be granted, ensuring clarity and detailed explanation in the order. The AO was directed to examine the dates and allow interest, considering the judicial principles mentioned. The appeal of the assessee was allowed for statistical purposes.

Conclusion: The judgment focused on resolving the dispute regarding the period for granting interest u/s 244A, emphasizing the need for detailed explanation and adherence to judicial principles in determining the interest period. The appeal was allowed in favor of the assessee for statistical purposes.