THE KANGRA CO-OP. BANK LTD.,DELHI vs. DIT, CPC, BENGALURU

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ITA 630/DEL/2026Status: DisposedITAT Delhi29 April 2026AY 2023-245 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee's submissions regarding interest on refunds were not adequately addressed in the first appellate orders. Therefore, the orders were set aside.

What were the facts?

The assessee, Kangra Co-op. Bank Ltd., claimed interest on income tax refunds for assessment years 2023-24 and 2024-15. There was a significant delay between the refund calculation and its credit to the assessee's account.

What were the issues?

Whether the assessee is entitled to interest on income tax refunds when there is a delay in crediting the refund amount after processing. Whether the first appellate authorities properly considered the assessee's claim for such interest.

Which sections of the Income-tax Act were involved?

Section 244A,Section 143(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A” NEW DELHI

Before: SHRI YOGESH KUMAR US & SHRI SANJAY AWASTHI

For Appellant: Shri Shyam Lal Gupta, CA
Hearing: 21.04.2026

Heard together (2 matters)

I.T.A No.630/Del/2026
I.T.A No.631/Del/2026

Read from the judgment's own cause title. This page is filed under one of them.

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

Both these appeals challenge the impugned orders dated 16.12.2025 and 14.01.2026, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”).

1.1 In both these cases, through the grounds of appeal, the assessee has ventilated a single grievance pertaining to not allowing interest on Income tax refund u/s 244A of the Act.

2.

Before us the Ld. AR stated that between the date of working out of the refund and the date on which the same was credited in the bank account of the assessee after processing u/s 143(1) of the Act, there is a gap of several months. In spite of the delay, no interest has been given to the assessee on the refund amounts worked out in both the years. It was the submission that the first appellate authorities have not considered the assessee’s submissions and have passed adverse orders.

2.1 The Ld. DR stated that it was difficult to understand under what legal provision such interest could be given to the assessee. However, the Ld. DR was agreeable in case the matters were to be remanded back to the file of Ld. First Appellate Authorities.

3.

We have considered the rival submissions and we have perused the documents before us. We are inclined to agree with the Ld. AR that the submissions of the assessee have not been adequately dealt with in the first appellate orders (impugned). Accordingly, we set aside both the orders and remand the same back to the file of the respective First Appellate Authorities, with the direction to consider the submissions of the assessee and thereafter pass speaking orders.

4.

In the result, both these appeals are partly allowed for statistical purposes.

Order pronounced in the open court on 29.04.2026

Sd/- Sd/- (YOGESH KUMAR US) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29.04.2026 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

ASSISTANT REGISTRAR ITAT, NEW DELHI Sr. No. Particulars Date 1 Date of dictation of Tribunal Order 21.04.2026 2 Date on which typed draft Tribunal Order is placed before the 27.04.2026 Dictation Member 3 Date on which typed draft Tribunal Order is placed before the 29.04.2026 other Member (in the case of DB) 4 Date on which the approved draft Tribunal Order comes to the 29.04.2026 Sr. P.S. /P.S. 5 Date on which the fair Tribunal Order is placed before the 29.04.2026 Dictating Member for sign 6 Date on which the fair Order is placed before the other Member 29.04.2026 for sign (in the case of DB) 7 Date on which the signed order comes back to the Sr. P.S. /P.S 29.04.2026 for uploading on ITAT website 8 Date of uploading, if not, reason for not uploading 29.04.2026 9 Date on which the file goes to the Bench Clerk 29.04.2026 10 Date on which order goes for xerox 11 Date on which the file goes for endorsement 12 Date on which the file goes to the Superintendent/O.S. for checking 13 Date on which the file goes to the Assistant Registrar for signature on the order 14 Date on which the file goes to dispatch section for dispatch the Tribunal Order 15 Date of dispatch of order 16 Date on which file goes to Record Room after dispatch the order

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