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2014 (9) TMI 1177 - HC - Income TaxInterest on the delayed refund of excess amounts paid as tax - Held that:- When Section 244A of the Act was introduced, a Circular dated 31 October 1989 was issued by the C.B.D.T wherein it is illustrated that where the refund is granted to an assessee, interest would not be payable only for the period of delay attributable to the assessee. In this case the impugned order does not attribute any delay to the assessee in the proceedings of Revision resulting in the refund. In the present case there is a statutory obligation to grant interest. However as observed by the Supreme Court in Tata Chemicals Ltd. [2014 (3) TMI 610 - SUPREME COURT] even in the absence of a statutory provision the State is bound to recompensate the person whose money it has used. In the above view the impugned order is set aside to the extent it refused to grant interest to the Petitioner on the sum of ₹ 7,50,768/-lakhs being the excess amount already refunded by the Revenue to the Petitioner. However as the Petitioner has restricted his claim for interest on refund of ₹ 7,50,768/- only from the date of filing the revision application on 3 October 1997 upto the date the refund of ₹ 7,50,768/-was granted. We therefore direct the Assessing Officer to work out the interest payable to the Petitioner on ₹ 7,50,768/- from 3 October 1997 to the date of refund and pay the same to the Petitioner.
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