Interest under section 244A to be computed on the gross including principal as well as interest

Last updated: 03 August 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Briefly stated facts are that the AO has computed the interest u/s. 244A of the Act on the refundable amount without considering the interest incomes credited earlier in the tax computation statement as per the appeal effect order dated 21.06.2010. In appeal, CIT(A) directed the AO to recalculate the interest u/s. 244A on the total refund due to the assessee inclusive of interest income and further directed to calculate the interest on the final refund amount determined in the computation inclusive of interest till the date of payment. Aggrieved, revenue is in appeals before us

Citation :
Joint Commissioner of Income-tax (OSD), Circle-8, Kolkata. (Appellant) Vs. M/s. ITC Hotels Ltd. (Merged with ITC Ltd. (PAN: AAACI5950L) (Respondent)