S. 244A Department not obliged to pay interest on interest as same is not provided in the law

Judgment in Sandvik case (supra)has been misquoted and misinterpreted by the assessees and also by the Revenue. They are of the view that in Sandvik case (supra) this Court had directed the Revenue to pay interest on the statutory interest in case of delay in the payment. In other words, the interpretation placed is that the Revenue is obliged to pay an interest on interest in the event of its failure to refund the interest payable within the statutory period. As we have already noticed, in Sandvik case (supra) this Court was considering the issue whether an assessee who is made to wait for re...