DCIT CIRCLE-2(2)(1), MUMBAI vs. M/S.STATE BANK OF INDIA, MUMBAI

O R D E R Per Shamim Yahya, A. M.: This appeal by the Revenue is directed against the order by the Commissioner of Income Tax (Appeals) dated 21.06.2017 and pertains to the assessment year 1999- 2000.

1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing the Assessing Officer to adjust the refund granted, first towards interest amount refundable and thereafter consider the balance against the tax amount refundable which will lead to excess grant of interest, contrary to the Legislative provision and law which is regularly followed by the Department.

2. On the facts and in the circumstances of the case and in law the Ld. CIT(A) was rjght in directing the AO to allow interest on refund arising on account of double taxation relief interest without appreciating the fact that the assesse is not 2 M/s. State Bank of India entitled for refund out of credit for DTR and hence no interest u/s 244A is allowable 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing to compute interest u/s 244A of I T. Act from first day of April of Assessment year upto to date of granting of refund without appreciating the fact that refund had not become due to the assessee out of advance tax payment or TDS but has arisen out of voluntary payment by assessee on going effect to the order of Ld. CIT(A) wherein for the first time claim of deduction on account of interest on securities was made and allowed.