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2023 (2) TMI 861 - DELHI HIGH COURTDelay in paying the audit fee - Petitioner was engaged as an auditor in exercise of the Assessing Officer’s (AO) powers u/s 142(2A) - HELD THAT:- There is enormous delay in each case in payment of the determined audit fee. The delay is nearly four years in each case. Insofar as the interest is concerned, it is payable if there is statutory enactment i.e., substantive law to that effect, or if trade, usage, custom or practice, which is enforceable in law mandates the grant of interest, or there is an agreement to that effect. The other eventuality where interest is awarded, is in circumstances where the Court, exercising equitable jurisdiction, seeks to preserve the real value of money. This is one such circumstance, given the inordinate delay in remitting the audit fee to the petitioner for no cause. The petitioner is, thus, in our view, entitled to be compensated for delay in payment of money that it could have used, had the money been remitted to it within a reasonable timeframe. Four years and above cannot be construed as a reasonable period. Thus interest ought to be paid to the petitioner at the rate of 7% per annum. Interest will run from the date of determination in each case till the date of payment of audit fee was made.
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