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2016 (11) TMI 1406 - ITAT CHENNAIInterest on interest for the delay in refund of the tax paid by the assessee - Held that:- The assessee now claims that the part of the amount repaid by the Assessing Officer has to be first adjusted towards interest. We find merit in the claim of the assessee. When the Assessing Officer repaid part of the amount to be refunded to the assessee, first it has to be adjusted towards the interest and if anything remains, it has to be adjusted towards refund of excess tax paid by the assessee. Therefore, the excess tax remains to be refunded by the Department is again subject to payment of interest under Section 244A of the Act. It is not known why the Department has not refunded the entire amount after quantification of the excess tax refundable by the Department together with interest thereon. Whatever the case may be, after the adjustment of interest from the refund made by the Department, if excess tax remains to be refunded, the Department has to pay interest under Section 244A of the Act. However, the matter needs to be re-examined by the Assessing Officer.
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