THE KANGRA CO-OP. BANK LTD.,DELHI vs. DCIT, CIRCLE 61(1), CIVIC CENTRE, NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, A: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No.- 3311/Del/2026 [Assessment Year: 2020-21] The Kangra Co-op. Bank Ltd., Dy. Director of Income Tax CPC 1916, Chuna Mandi, Pahar Ganj, Bengaluru, New Delhi-110055. Vs DCIT, Circle 61(1), Civic Centre, New Delhi-110002. PAN- AAATT0361M Assessee Revenue Assessee by Shri S.L. Gupta, CA Revenue by Shri Manoj Kumar, Sr. DR Date of Hearing 21.07.2026 Date of Pronouncement 31.07.2026 ORDER Per Renu Jauhri, Accountant Member:

This appeal by the assessee is directed against the order dated 08.01.2025 of the ld. Commissioner of Income Tax, Appeal, ADDL JCIT (A), Bhubaneswar, [hereinafter referred to as the ‘Ld. CIT(A)] arising out of the intimation dated 12.10.2021 passed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ADIT, CPC, (hereinafter referred to as the ‘AO’) pertaining to Assessment Year (A.Y.) 2020-21.

ITA No.- 3311/Del/2026 The Kangra Co-op. Bank Ltd. 2. The assessee has raised the following grounds of appeal: “1. 1. On the facts and circumstances of the case, the order passed u/s 250 vide DIN & Order ITBA/APL/S/250/2024-25/1071999903(1) dated 08/01/2025 by the Learned ADDL/JCIT (A) - Bhubaneswar [CIT- (A)] is bad both in the eyes of law and on facts. 2. On the facts and circumstances of the case, learned ADDL/JCIT (A) has erred both on facts and in law in not allowing the interest on income Tax refund u/s 244A up to the date of credit of Income Tax refund to the bank account of the appellant. 3. On the facts and circumstances of the case, Learned ADDL/JCIT (A) has erred both on facts and in law in confirming the order of the Assessing Officer, rejecting the contention of the appellant, that Interest of Rs. 21,02,721/-, on Income Tax refund of Rs.2,21,33,911/-was determined u/s 244A, till the date of intimation i.e, up to October 2021, against the due interest till the date of its actual credit to the bank account of the assessee on 07th June 2022 4. That despite repeated requests, opportunity was not granted by the ADDL/JCIT (A), to the appellant, for personal hearing either in person or through VC 5. On the facts and circumstances of the case, learned ADDL/JCIT (A) has erred both on facts and in law in not considering the written submissions of the appellant. 6. That the appellant craves leave for reserving the right to amend, modify, alter and/or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”

3.1 Brief facts are that the assessee was granted income tax refund of Rs. 2,21,33,911/- u/s 143(1) for A.Y. 2020-21 on which interest of Rs. 21,02,721/- was allowed. This interest was computed upto the date of intimation in 12.10.2021. The assessee has contended that the interest should have been granted till the date of actual credit of the refund in his bank account on 07.06.2022, which was not accepted by the AO.

ITA No.- 3311/Del/2026 The Kangra Co-op. Bank Ltd. 3.2 Aggrieved, the assessee preferred an appeal before the CIT(A), the assessee’s appeal was also dismissed by the CIT(A), without giving any opportunity of being heard to it.

Further aggrieved, the assessee has preferred an appeal before the Tribunal.

In this case, there has been an unusual delay of more than 7 months between the determination / grant of refund u/s 143(1) and the actual credit of the refund in assessee’s bank account. The assessee is aggrieved on account of the fact that the interest of this period has not been given to him.

4.1 We note that the issue regarding grant of interest till the date of issue of refund / actual credit in bank account has been decided in assessee’s favour in various decisions of the Hon’ble High Court and coordinate Benches. Some of which are as under:

(i) Nokia Solution & Network India (P) Ltd., W.P (C) 11071 of 2019, Hon’ble Delhi High Court held that interest should be calculated u/s 244A till the date of actual payment of refund.

(ii) CIT vs.Pfizer Ltd. [1991] 91 ITR 626 (Bom), 3

ITA No.- 3311/Del/2026 The Kangra Co-op. Bank Ltd. Wherein, it has been held that the assessee is entitled to get refund upto the date of actual receipt of refund.

4.3 Accordingly, considering the facts of the case in the light of judicial pronouncements, we direct the AO to allow interest to the assessee till the actual date of credit in his account.

Order pronounced in the open court on 31.07.2026

Sd/- Sd/- [SATBEER SINGH GODARA] [RENU JAUHRI] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 31 .07.2026. Pooja, Sr. PS. Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR

Asst. Registrar, ITAT, New Delhi,