Case Law Details
The High Court has failed to appreciate that while charging interest from the assessees, the Department first adjusts the amount paid towards interest so that the principal amount of tax payable remain outstanding and they are entitled to charge interest till the entire outstanding is paid. But when it comes to granting of interest on refund of taxes, the refunds are first adjusted towards the taxes and then the balance towards interest. Hence, as per the stand that the Department takes they are liable to pay interest only up to the date of refund of tax while they take the benefit of assessees funds by delaying the payment of interest on refunds without incurring any further liability to pay interest,. This stand taken by the respondents is discriminatory in natrure and thereby causing great prejudice to the lakhs and lakhs of assessees.
INCOME TAX APPELLATE TRIBUNAL, KOLKATA
Assessment Year: 1996-97 to 1998-99
Joint Commissioner of Income-tax (OSD)
Vs.
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Hi,
would like to know that u/s 244(a), what is the rate of interest (year wise for the AY 10-11 till 15-16)that department pays on refund payable.
Regards