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2015 (6) TMI 142 - HC - Income TaxInterest on Refund - Unexplained inordinate delay in payment of interest within the statutory period by the department - Held that:- It is apparent that the assessee became entitled to payment of interest at least for the pre-assessment period from the date his appeal by CIT was allowed and the liability was reduced to 3,15,415/- only. This payment of interest has been denied to the assessee without any justifiable cause even after expiry of 9 years from the date interest was payable. Similarly, we find that for the post-assessment period, the assessee should have been paid interest on the sum of ₹ 37 lacs refunded to him on 2.2.2007 from the date of the appellate order till the date of money was so returned. It has taken nearly 8 years for the department to make the payment of the interest and that too on wrong calculation. Thus the department was legally not justified in retention of the amount of interest which was payable to the assessee both under Section 132B (4) as well as under Section 243 / 244A for the period of nearly 9 and 8 years respectively. Thus the case of the assessee falls within the category of cases where there has been inordinate delay on the part of the department to pay the statutory interest, therefore, the assessee is entitled to be compensated for such wrongful retention of the money by the department. The assessee is entitled to be compensated at the same rates i.e. 9% as was provided for by the Apex Court in the case of Sandvik Asia Ltd (2006 (1) TMI 55 - SUPREME Court). - Decided in favour of assesse.
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