Assessee filed a rectification application under section 154 on 30-3-2016, highlighting incorrect status as a trust instead of AOP, resulting in a recomputed tax liability and a refund. However, interest on refund was not provided NFAC observed that delay in refund proceedings was attributed to assessee’s conduct and therefore, it would not be entitled to any interest on refund. Tribunal held that  in pursuant to order passed under section 154 refund amount was determined in respect of assessee and when this refund was issued to assessee automatically, interest component had to be calculated and to be given to assessee and this exercise should have been completed immediately after pronouncement of rectification order under section 154. Since department while calculating refund amount did not give interest to assessee, this was in direct contravention to section 244(1A). Therefore, order of NFAC was to be set aside and Assessing Officer was directed to calculate interest as per law and remit same to assessee. (AY. 2007-08)