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Section 244(1A)refund as a result of order ftom CIT(A)

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shiza khan

34 Points Posted on 06 July 2020

If refund is not granted by AO within 3 mon from end of the mon in which order was recd by CIT then additional interest of 3% pa to be given on such refund..
My query is if the period consist of mon and part thereof then part thereof will be ignored
eg-if time period is 1month and 10days so since its pa toh we will take 1/12 or 40days/366..
A teacher in his book said ignore mon part thereof and take 1/12.
Is he right??
Any case law or clarification on my above query?
please tell me the correct ans with reason

Replies (2)

Quick Summary

This discussion concerns the calculation of additional interest under Section 244(1A) of the Income Tax Act when a refund isn't processed by the Assessing Officer (AO) within three months of the CIT(A) order. The core question is how to treat partial months when calculating the 3% per annum interest. Specifically, if the period includes days beyond a full month, should the entire month be counted, or only full months, or should it be calculated pro-rata? Rule 119A suggests ignoring parts of a month for PA interest calculations, but clarification and case law are sought to confirm the correct approach.