ACIT (LTU)-1 , MUMBAI vs. UNION BANK OF INDIA , MUMBAI

ORDER PER S. RIFAUR RAHMAN, A.M. The present appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-2, Mumbai [in short ‘CIT(A)’] for the assessment year 2015-16 dated 05.11.2019 and arises out of assessment completed u/s 143(3) of the Income Tax Act, 1961 (in short the Act). 2. Revenue is in appeal with the following grounds of appeal: Whether, in the facts and circumstances of the case an in law, the Ld. CIT(A) was right in holding that ground raised in respect of computation of interest u/s 244A of the Act is allowed, having set aside the same to the file of the AO M/s Union Bank of India 2 with the direction to verify the computation of interest as computed by the assessee allowed to them and modify the interest u/s 244A to be allowed appropriately in the light of the provisions of section 244 r.w. Rule 119A of the Act.

3. At the time of hearing it is brought to our notice that the Ld. CIT(A) gave direction to the Assessing Officer for the sake of clarity it is reproduced below:

The AO has determined the refund by passing the order on 29.06.2018, and the interest u/s.244A should be allowed till the month of June-2018 in terms of Rule 119A(b) which provides that where interest has to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month and interest shall be so calculated. The AO is directed to verify the computation of interest u/s.244A as computed by the appellant at Rs.271,93,001/- and at Rs.150,03,754/-, as allowed to the appellant vide order dated 29.06.2018. Further, the AO is directed to modify the interest u/s.244A to be allowed to the appellant appropriately, in light of the provisions of Sec.244A r.w. Rule 119A and allow appropriate relief.

4. Since the issue was remitted back to the AO to determine the interest u/s 244A of the Act with a clear direction by the Ld. CIT(A). However, Department is in appeal before us with the plea that interest u/s 244A of the Act is allowed and having set aside the same to the file of AO with a direction to verify the computation of interest as computed by the assessee.