Interest on Income Tax Refund is Taxable, Rectification Plea Rejected

Gujarat State Police Housing Corporation Limited Vs DCIT (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has ruled that interest received by an assessee under Section 244A of the Income Tax Act, 1961, on an income tax refund is indeed taxable as “income from other sources.” The Tribunal dismissed a rectification application filed by Gujarat State Police Housing Corporation Limited, a wholly-owned Government of Gujarat entity, asserting that the taxability of such interest is not a “mistake apparent from the record” and therefore cannot be rec...