INCOME TAX ACT, 1961

Section 244

Refund - Interest under section 244 - Period for which interest payable -

AO on 28-8-2013 withdrew interest under section 244 of Rs. 23,91,54,333 considering it as excess interest granted. On 29-10-2013, assessee made payment of demand. On 26-7-2017 Tribunal allowed appeal of assessee and dismissed appeal of revenue by holding that interest under section 244 granted to assessee could not be withdrawn on 21-11-2017. Order was passed by AO giving effect to the order of Tribunal dated 26-7-2017. Issue arose for consideration was whether assessee was entitled for interest under section 244 from date of payment of taxes i.e. 29-10-2013 and till the date such taxes were actually adjusted against demand of some other assessment year on 21-11-2017, while giving effect to the order of Tribunal.Held: It was a case of assessee seeking interest on taxes actually paid by him which ultimately resulted in refund vide proceedings, dated 21-11-2017. It was not a case of assessee claiming interest on interest. Hence, AO was directed to grant interest under section 244 for the period 29-10-2013 to 21-11-2017.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

APPELLATE TRIBUNAL RULES, 1963

Rule 34(5)(c)

SUBSCRIBE FOR FULL CONTENT