Tribunal held that interest on refund whenever it is granted, is assessable in that year itself and if it is adjusted with any prior tax liability of earlier years and such interest is in turn paid to the Government account that also is payment of interest to the assessee. In such case, there is no need for any intimation separately.( AY.2014-15)
Fis Solutions (India) P. Ltd. v Dy. CIT (2020) 79 ITR 656 (Pune) (Trib)
S. 244A : Refund – Interest on refunds -Intimation — Assessable in year granted — If interest adjusted with prior tax liability of earlier years and paid to Government account — No need of separate intimation.
The assessees NEED NOT BE INTIMATED .For this reason the assessee are recieving E COMPAIGN alert that INTEREST ON REFUNDS NOT SHOWN BY ASSESSEE. 26AS IS ALSO NOT REFLECTING THE ADJUSTMENT IN CASES.NO ORDERS ARE AVAILABLE OR SENT.
SUDDENLY THE ALERT is putting the assessees,accountants,auditors in a QUANDRY for no deliberate fault.