INCOME TAX ACT, 1961

Section 244A

Refund - Interest on refund - Interest on delayed refund -

Assessee's case was that for the assessment years 1996-97 to 1999-2000, certain refunds arising out of excess TDS were issued in favour of the assessee. However, interest under section 244A was not paid in respect of some of the refunds, while in the case of some other refunds, interest was paid for a shorter period than what was claimed by assessee. It was averred in the appeal that interest was refused on the ground that delay in issuing refund was attributable to the assessee. Held: In view of the ratio laid down in M/s. HEG. Limited (2010) 324 ITR 331 (SC) : 2010 TaxPub(DT) 1107 (SC), interest on the delayed refund becomes part of the principal amount and delayed interest includes the interest for not refunding the principal amount. Accordingly, it also included the interest on the delayed refund. Therefore, appeal of Revenue was dismissed.

Relied:CIT v. Gujarat Fluoro Chemicals (2014) 1 SCC 126 (SC) : 2014 TaxPub(DT) 1540 (SC), CIT v. HEG. Ltd. (2010) 324 ITR 331 (SC) : 2010 TaxPub(DT) 1107 (SC), DCIT v. Solan District Truck Operators Transport Co-op. Society Ltd. [M.A. Nos. 10 to 12/Chd/2019 (Arising out of ITA Nos. 277 to 279/CHD/2017-decided vide order 31-10-2017), dt. 7-8-2019], M/s. Solan District Truck Operators Transport Co-op. Society Ltd. v. DCIT [ITA Nos. 277 to 279/Chd/2017, dt. 31-10-2017]

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 1999-2000

INCOME TAX ACT, 1961

Section 254

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