Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 694 - HC - Income TaxInterest on delayed refund u/s 244A - HELD THAT:- In this case, the amount paid by the petitioner’s employer alone has been refunded back without interest vide 1st mentioned impugned order of the 1st respondent dated 5.10.2012. There is however no discussion as to why the interest under Section 244A was not payable to the petitioner. Honourable Supreme Court in Sandvik Asia Ltd versus Commissioner of Income Tax [2006 (1) TMI 55 - SUPREME COURT] has ordered payment of interest in case of delayed payment of refund. There it was held amount paid during pendency of the appeal are to be considered as deposits and therefore they should be refunded back together with interest. Sub-clause (1) (a) to section 244 A of the Income Tax Act, 1961 permits interest on delayed payment of refund. That being the case, the petitioner is justified in asking for interest on delayed refund of tax that was paid by his employer which has been held to be not payable by the employer. Further, once there is a refund and if there is a delay, interest is payable by the employer. There is no basis for denying interest on such delayed refund of the amounts. Petitioner has made out sufficient case for interfering with the impugned orders of this Court to give a positive direction to the respondents to pay interest to the petitioner on such delayed refund of the amount.
|