Pr CIT v Ambuja Darla Kashlog Mangoo Transport Cooperative Society

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The Tax Publishers2020 TaxPub(DT) 1686 (HP-HC) : (2020) 428 ITR 0094 : (2020) 317 CTR 0363 : (2020) 269 TAXMAN 0618

INCOME TAX ACT, 1961

Section 244A

Since interest on delayed refund becomes part of principal amount and delayed interest includes interest for not refunding principal amount and, thus, interest under section 244A also includes interest on delayed refund.

Refund - Interest on delayed refunds - Interest under section 244A whether also includes interest on delayed refund -

Issue was as regards payment of interest on delayed refunds. Held: Since interest on delayed refund becomes part of principal amount and delayed interest includes interest for not refunding principal amount and, thus, it also includes interest on delayed refund.

Followed:CIT v. HEG Ltd. (2010) 324 ITR 331 (SC) : 2010 TaxPub(DT) 1107 (SC)

REFERRED : CIT v. Gujarat Fluoro Chemicals (2013) 358 ITR 291 (SC) : 2014 TaxPub(DT) 1540 (SC); Sandvik Asia Ltd. v. CIT (2006) 280 ITR 643 (SC) : 2006 TaxPub(DT) 1272 (SC)

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 260A