ITAT Rules Interest on Tax Refund Payable Until Actual Release of Funds, Not Just Order Date.

ITAT held that interest on refund is payable till the date funds are released to assessee, not till date of order accepting refund claim. Relying on Delhi HC's Nokia ruling, ITAT directed AO/CPC to grant interest to assessee till 30-01-2024 when refund was actually released after order u/s 154, as 'refund granted' in Sec 244A means refund payment, not just order accepting refund claim. Interest compensates for time value of money. .....

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