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2017 (6) TMI 866 - AT - Income TaxNon granting of interest on the tax deducted at source u/s 244A(a) - assessee contented in the proceedings U/s.154 interest should be granted right from first April 2004 till the date of passing the order - whether no claim of exemption U/s.10(10C)in the original return of income? - Held that:- As in the case of Tata Chemical Limited 2014 [2014 (3) TMI 610 - SUPREME COURT] held that. “Refund due and payable to the assessee is debt-owed and payable by the Revenue. The Government, there being no express statutory provision for payment of interest on the refund of excess amount/tax collected by the Revenue, cannot shrug off its apparent obligation to reimburse the deductors lawful monies with the accrued interest for the period of undue retention of such monies. The State having received the money without right, and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest." In View of the above it is settled that if a resident deductor is entitled for the refund of tax deposited under Section 195, then it has to be refunded with interest under section 244A of the Act. from the date of payment of such tax.
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