IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER &

SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER I.T.A. No. 4374/Mum/2025 A.Ys: 2005 DCIT, Circle – 3(4) Vs Reliance Industries Limited Room no. 559, 5th Floor, . 3rd Floor Maker Chamber IV Aayakar Bhavan, M.K. Nariman Point S.O. Mumbai Road, Mumbai - 400020 Mumbai -400021 PAN – AAACR5055K (Appellant) (Respondent)

Assessee by Shri Nimesh Vora & Ms Moksha Mehta Revenue by Shri Umashankar Prasad (CIT DR)

Date of Hearing 17.12.2025 Date of Pronouncement 16.03.2026

ORDER

PER SANDEEP GOSAIN , JM:

This appeal is filed by the Revenue against the order of CIT(A), National Faceless Appeal Centre (NFAC), Delhi, vide order no. ITBA/NFAC/S/250/2024-25/1074909946(1) dated 24.03.2025, passed against the order u/s 154 r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") dated 03.11.2023 passed by the Deputy Commissioner of Income Tax - Circle-3(4), Mumbai, for Assessment Year 2005-06.

2. The ground of appeal taken by the Revenue is reproduced as under:

(i) "Whether on the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) has erred in allowing the assessee's appeal and holding that for the purpose of calculating interest u/s 244A of Income Tax Act, 1961 the assessee is entitled to receive interest on refund till the date of actual credit of refund, ignoring the fact that the actual credit of refund into the assessee's bank account is an event of future and is not ascertainable at the time of grant of refund by the AO and for this reason the Parliamentary mandate is assessee's entitlement to receive refund till the date of grant of refund by the AO and that the CIT(A) can't interpret grant of refund be the date of actual credit of refund?"

2.1 Consistent with our decision to condone the delay in ITA No. 3985/Mum/2025 (AY

2013-14), the delay in the present appeal is also condoned.

3. The sole issue involved in the appeal filed by the Revenue is in respect of date till which interest under section 244A of the Act should be computed and whether the interest should be computed till date of grant of the refund or whether it should be computed till date of actual credit of refund to the assessee.

4. Brief facts of the case are that the assessee is a public limited company. Post the assessment u/s 143(3), on appeal filed by the assessee, certain relief were allowed by the CIT(A) and ITAT.

4.1. The order giving effect to CIT(A) order was passed on 12.04.2019 determining refund of Rs. 131,74,46,940. The assessee filed a rectification application on 19.07.2019 pursuant to which, an order u/s 154 was passed on 03.07.2020 showing refund of Rs 27,04,88,975. Although refund of Rs. 27,04,88,975 was determined in rectification order dated 03.07.2020, the assessee received the credit of the refund in its bank account only on 28.04.2023.

5. The assessee filed rectification application on 31.05.2023 for short-grant of interest u/s 244A of the Act for the period July 2020 to April 2023. The AO thereafter passed order u/s 154 of the Act dated 03.11.2023 determining a demand payable of Rs. 9,78,77,361 wherein interest u/s 244A of the Act remained unchanged. The AO computed interest u/s 244A of the Act only till June 2020 i.e. till the date of grant of refund in order u/s 154 dated 03.07.2020.

6. The assessee preferred appeal before the CIT(A) inter-alia for short-grant of interest u/s 244A of the Act in the order u/s 154 of the Act dated 03.11.2023. The CIT(A) allowed the ground in favour of assessee and directed the AO to recalculate interest u/s 244A of the Act till the date of actual credit of refund in bank account of the assessee, relying on the following decisions:

 Nokia Solutions and Networks India (P.) Lid. Vs ACIT [2024] 169 taxmann.com 537 (Delhi)

 Group M Media India (P.) Ltd vs DCIT [2023] 157 taxmann.com 487 (Bom)

The Revenue has challenged the aforesaid finding of CIT(A) before us.

7. Before us, the AR submitted that the as