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TMI Blog2024 (7) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... 151 - BOMBAY HIGH COURT] and Bharat Aluminum [ 2011 (5) TMI 565 - DELHI HIGH COURT] has directed AO to allow interest u/s. 244A of the Act on the refund arising from advanced tax paid by the assessee. However, in the last line of the order it appears that the CIT(A) inadvertently mentioned refund arising on account of MAT credit . It is settled position that the department is liable to pay interest u/s. 244A of the Act on the refund arising from advance payment of tax by the assessee. Since, in the instant case there is some ambiguity in the findings of the CIT(A) in allowing interest. We deem it appropriate to restore this issue back to the file of AO for the limited purpose of verification. If refund has accrued to the assessee from advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (1). As per the provision sub section (1) to section 115JA of the Act where any amount of tax is paid by the assessee company for any assessment year then, credit in respect of tax so paid shall be allowed to him, in accordance with the provisions of Section 115JAA of the Act. In light of the aforesaid provisions assessee is not eligible to claim interest on MAT credit. 4. Per contra, Ms. Alka Arren appearing on behalf of the assessee submits that the assessee has not claimed interest on MAT credit. The assessee has claimed interest on refund of advance tax paid. To substantiate his contention the ld. AR referred to the computation of income at page 6 of the paper book. She pointed that assessee has paid advance tax to the tune of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to pay interest u/s. 244A of the Act on the refund arising from advance payment of tax by the assessee. Since, in the instant case there is some ambiguity in the findings of the CIT(A) in allowing interest. We deem it appropriate to restore this issue back to the file of AO for the limited purpose of verification. If refund has accrued to the assessee from advance payment of tax, the AO shall allow interest to the assessee on such refund u/s. 244A of the Act, in accordance with the decision of Hon ble Apex Court in the case of CIT vs. Tulsyan NEC (supra). However, if it is a case of refund on account of MAT credit no interest shall be allowable. 7. In the result, appeal of the department is partly allowed for statistical purpose, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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