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2017 (6) TMI 1158 - HC - Income TaxDeclining interest on refund of TDS to the petitioners - Held that:- We are of the view that the delay up to the date of filing the petition before CBDT i.e., 26.02.2008 is attributable to the petitioners and they are not entitled to claim interest on refund until this date but the delay thereafter had essentially been on the part of the respondents; and it had been squarely against the plain statutory provisions as also against the spirit of law that the respondents chose to deny interest altogether to the petitioners. As observed, the right of receiving interest is available to the petitioners as per the statute and nothing of any estoppel could be considered operating against the petitioners over the statutory provisions contained in Section 244-A of the Act. Thus, we are clearly of the view that the impugned orders in so far the respondent No.1 had declined the payment of interest over the refundable amount of tax and consequential denial of interest in the impugned assessment orders cannot be approved and in modification of the impugned orders, the petitioners deserve to be allowed interest on the refundable amount of tax w.e.f. 26.02.2008. Declined refund of TDS for want of confirmation from the deductors - Held that:- No reason that refund of the said amount of ₹ 11,44,821/- was denied to the petitioners in the aforesaid assessment orders dated 30.12.2013. The claim of the petitioners in this regard deserves to be allowed. Entitlement to compensation for delayed payment of interest in the form of interest over interest - Held that:- The peculiar circumstances of the present case, as already noticed, had been that the initial long delay is attributable to the petitioners themselves. The other part of delay in ordering and making refund is adequately taken care of by the amount of interest, which the petitioners are held entitled to w.e.f. 26.02.2008. Though accepting the claim for refund in the assessment orders dated 30.12.2013 but issuing refund cheques in the month of May, 2014 cannot be appreciated but, in the overall circumstances of this case, we find no reason to award any further interest over the statutory interest to the petitioners. This part of the claim of the petitioners is, therefore, declined.
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