The Appellant filed return of income claiming a refund. Assessment order under section 143(3) was issued by the AO on 30 December 2018 along with the computation sheet determining refund. Interest under section 244A of the Act was granted by the AO which was calculated from 1 April 2016 to 31 October 2018 i.e. for a period of 31 months. The refund was received by the appellant only on 4 June 2019 in its bank account i.e. after 6 months of passing of assessment order.

The Court held that the CBDT vide Circular No. 20-D (XXII-22) of 1968, dated 20 August 1968 clarified that in cases where interest is payable by the Central Government to assessee under section 243 of the Act, such interest is to be calculated up to the date of issue of the refund voucher. The language used in section 244A of the Act is similar to language used in section 243 of the Act and therefore reliance can be placed on the above Circular issued by the CBDT. (ITA No.428 to 430/Jp/2022, dated 05/04/2023) (AY 2016-17 to 2018-19)