JUDGMENT :

K.R. Shriram, J.

1. This is an appeal filed under Section 260A of the Income Tax Act, 1961 (the Act) impugning an order dated 5th December 2002 passed by the Income Tax Appellate Tribunal, Mumbai Bench (ITAT) dismissing appellant’s appeal and refusing grant of interest under Section 244A(1)(a) of the Act on the refund admissible to appellant. The ITAT refused to grant interest on the ground that the refund arising on regular assessment after allowing TDS and advance tax is less than 10% of the tax as determined on regular assessment.

2. For the Assessment Year 1989-1990 appellant returned an income of Rs.43,64,37,800/- as per the original return of income under Section 139 of the Act and paid tax of Rs.22,68,62,710/- [comprising of Rs.20,44,29,076/- as advance tax and tax deducted at source (TDS) and Rs.2,24,33,634/- of self assessment tax (SA Tax)]. While processing appellant’s return under Section 143(1) of the Act, the Assessing Officer made certain additions raising a demand of Rs.1,61,73,216/-. The said amount was paid by appellant on 25th June 1991.

3. Appellant’s