S.N. Agrawal Vs Union of India (Chhattisgarh High Court)
Summary: The High Court of Chhattisgarh at Bilaspur has held that the petitioners were entitled to interest on income-tax refunds arising from excess self-assessment tax from the date on which the tax was paid, up to 01.06.2016. The Court also noted that interest for the period from 01.06.2016 to 30.07.2018 had already been paid by the Income-Tax Department.
The petitioners had paid self-assessment tax for AY 2009-10 and subsequently succeeded before the Commissioner of Income Tax (Appeals), which held that the land transferred by them did not constitute a capital asset. Consequently, substantial additions were deleted and refunds became payable.
The Court relied upon the principles laid down by the Supreme Court in Union of India v. Tata Chemicals Ltd., 2014 (6) SCC 335, and the Karnataka High Court in Commissioner of Income-Tax v. Vijaya Bank, holding that where excess tax paid by an assessee becomes refundable, interest is payable on such excess payment from the date of payment where the case falls outside the specific situations covered by Section 244A(1)(a).
Facts of the Case
The petitioners had filed their returns for Assessment Year 2009-10 declaring total incomes of Rs.68,27,080/- and Rs.89,40,150/- respectively. They claimed deduction under Chapter VI-A of the Income Tax Act, 1961 and claimed credit for tax deducted at source.
