Interest on income tax refund cannot be taxed if same gets wiped out subsequently during regular assessment

DCIT Vs Honeywell Automation India Ltd (ITAT Pune) Conclusion: Interest on income-tax refund amounting to Rs.1.18 crore cannot be charged to tax on the processing of return u/s.143(1) during the year under consideration for the raison d’etre that the regular assessment made in the year 2017 resulted into creation of demand and wiping out the refund already granted to the assessee along with recovery of interest. Held: Assessee was granted refund of Rs.11,47,73,740/- (inclusive of interest component of Rs.1,18,37,651/-) pertaining to the assessment year 2012- 13 on 12-03-2014 in AY 2014-15. D...