9911796707
TMI Blog2025 (1) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... ted till the date the funds are released to the assessee and not till the date of order accepting the assessee s claim for grant of refund. The expression refund is granted would necessarily mean refund of payment of the amount. The interest is paid to compensate the payee for time value of money. Therefore, it is difficult to accept that the date on which refund is granted as used in Sec. 244A is to be read as the date on which an order accepting the assessee s claim of grant of refund is passed and not the date on which the funds are released. Applying the same principle, we direct Ld. AO / CPC to grant the interest to the assessee in accordance with law till 30-01-2024. - Hon ble Shri George George K., VP And Hon ble Shri Manoj Kumar A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 244A of the act. Reliance was placed on the decision of Hon ble Rajasthan High Court in the case of Rajasthan State Electricity Board vs. CIT (281 ITR 274) to arrive at such a conclusion. Accordingly, the additional interest was denied to the assessee. Aggrieved, the assessee is in further appeal before us. 3. Upon careful consideration of factual matrix, it could be seen that the additional interest has been denied to the assessee on account of the fact that an intimation appear to have been issued to the assessee u/s 143(1) on 29-12-2021 vide DRN / SRN 2021202037031557992C. However, no refund has been granted to the assessee pursuant to the same. The said intimation is sought to be rectified by CPC and the intimation has accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia (P) Ltd. vs. Addl. CIT (169 Taxmann.com 537) has held that interest on refund is to be calculated till the date the funds are released to the assessee and not till the date of order accepting the assessee s claim for grant of refund. The expression refund is granted would necessarily mean refund of payment of the amount. The interest is paid to compensate the payee for time value of money. Therefore, it is difficult to accept that the date on which refund is granted as used in Sec. 244A is to be read as the date on which an order accepting the assessee s claim of grant of refund is passed and not the date on which the funds are released. Applying the same principle, we direct Ld. AO / CPC to grant the interest to the assessee in accordan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
