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2014 (5) TMI 59 - ALLAHABAD HIGH COURTInterest on refund claim - Section 11-BB - Held that:- A bare perusal of Section 11BB of the Act, reveals that the payment of interest is not depended on the claim by the party. It is automatic. In case, if refund is not paid within three months from the date of receipt of the application, the authority concerned is under obligation to pay the interest. In Section 11BB of the Act the word used is "there shall be paid to the applicant." It means that it is not discretionary and has to pay. The payment of interest is statutory and automatically. The waiver of the interest by the party has no relevance and on the said ground payment of interest can not be denied. Petitioner is entitled for the interest under Section 11BB of the Act on the refunded amount, if the amount has been refunded after three months from the date of receipt of the application. Having regard to the facts and circumstances, of the present case, we are not impressed with the argument of learned counsel for the petitioner that the petitioner is entitled for interest on interest - Decided partly in favour of assessee.
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