Scope of sub-section (1A) inserted by Taxation Laws (Amendment) Act, 1975 explained – Instructions for giving appeal effects promptly
Circular : No209 [F. No. 212/485/76-(A-II)], dated 11-1-1977.
1. Section 244(1) provides that where a refund is due to the assessee as a result of any order passed in appeal, or other proceedings under the Act and the refund is not granted within a period of three months from the end of the month in which such order is passed, the assessee will be entitled to receive simple interest at 12 per cent per annum on the amount of the refund due from the date immediately following the expiry of the aforesaid period of three months to the date on which the refund is granted.