DCIT Vs IDBI Bank Limited (ITAT Mumbai)
ITAT Mumbai held that when part refund is granted it should be first adjusted towards outstanding interest and then against the tax payable. Interest u/s. 244A of the Income Tax Act directed to be calculated accordingly.
Facts- The respondent assessee is a bank. Consequent upon the order dated 03.09.2019 passed by this Tribunal, learned AO, in order to give effect to this order, passed revised assessment order dated 30.09.2021 and granted interest to assessee bank u/s. 244A at 20.17 crores as against the assessee’s claim of Rs. 22.07 crores.
Assessee, being aggrieved by the revised order passed by the assessing officer for the reason that the difference of short grant of interest has resulted on account of learned assessing officer not granting interest on the amount of refund due, after adjusting the amount of refund already granted by segregating the refund due, into interest and tax and not granting interest on the total amount of balance refund due of tax. After adjusting the refund granted as against the specific provisions of Section 244A of the Act.
Being aggrieved by the impugned order passed by learned CIT(A), department of revenue has approached this Tribunal.
