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2009 (12) TMI 35 - SC - Income TaxInterest on Interest - the question raised by the Department is whether the assessee was entitled to claim interest on interest under the provisions of Section 244A of the Income Tax Act 1961 that during the Assessment Year 1993-1994 the amount paid by the assessee towards TDS was Rs. 45, 73, 528/-. The Tax paid after Original Assessment was Rs. 1, 71, 00, 320/-. The total of TDS amounting to Rs. 45, 73, 528/- plus Tax paid after Original Assessment of Rs. 1, 71, 00, 320/- stood at Rs. 2, 16, 73, 848/-. In other words the total tax paid had two components viz. TDS Tax paid after Original Assessment. The respondent was entitled to the refund of Rs. 2, 16, 73, 848/- (consisting of Rs. 1, 71, 00, 320/- and Rs. 45, 73, 528/- which payment was made after 57 months and which is the only item in dispute assessee claimed interest for delayed refund - held that - this is not a case where the assessee is claiming compound interest or interest on interest as is sought to be made out in the civil appeals filed by the Department. - we are of the view that the assessee was entitled to interest for 57 months on Rs. 45, 73, 528/-. The principal amount of Rs. 45, 73, 528/- has been paid on 31st December 1997 but net of interest which as stated above partook the character of amount due under Section 244A
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