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2020 (10) TMI 522 - HC - Income TaxInterest in terms of Section 244A - Whether interest component partakes the character of amount due under Section 244A? - payment of interest on interest - HELD THAT:- A three judge bench of the Supreme Court in H.E.G. Ltd. [2009 (12) TMI 35 - SUPREME COURT] while dealing with the expression ‘refund of any amount becomes due to the assessee’, held that the interest component will partake the character of amount due under Section 244A. When an order of refund is issued, the same should include interest payable on the amount, which is refunded. If the refund does not include interest due payable on the amount refunded, the revenue would be liable to pay interest on the short fall. This does not amount to payment of interest on interest. - If the interest has to be computed after 01.04.1989, the same has to be computed in accordance with Section 244A of the Act only and the assessee is entitled to interest in terms of Section 244A of the Act only. - Decided against revenue.
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