Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 447 - HC - Income TaxInterest on refund u/s 244(1A) - Held that:- Following Commissioner of Income-tax Vs. Govindarajulu Chetty (T.N.K.) [1987 (2) TMI 3 - SUPREME Court] - The liability to pay interest would arise when the compensation amount due to the assessee had not been paid, in each of the relevant years - The accrual of interest has to be spread over the years between the date of acquisition till it was actually paid - When a statute brings to charge certain income, its intention is to enforce the charge at the earliest point of time - If the income has accrued earlier and the assessee treats it as taxable during the year of accrual, it is not open to the revenue to treat it as an income in the year of receipt in a case where the assessee follows the mercantile basis of accounts, If such an option is given, the same income becomes taxable twice, once on the basis of accrual and another on the basis of receipt. The reading of Sections 237, 240 and 244(1A) casts a duty on the Assessing Officer to charge that much of tax which the assessee is liable to pay and mandates the refund of the excess amount along with interest - Decided in favour of assessee.
|