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2014 (11) TMI 270 - HC - Income TaxGrant of interest on interest – Amount due to assessee by way of refund - Whether an assessee under the Income Tax Act would be entitled to receive any amount by way of interest on interest under the Income Tax Act - Held that:- The original petition as it claims interest on interest on the amounts that were due to the petitioner by way of refund failed - in Sandvik Asia Ltd. v. Commissioner of Income-Tax and Others – [2006 (1) TMI 55 - SUPREME Court] it has been held that although the assessee was not entitled to interest on interest under the Income Tax Act, he was nevertheless entitled to a reasonable amount by way of compensation for the delayed payment of amounts that were due to him by way of refund of tax and interest thereon, the Supreme Court on the facts of that case, proceeded to grant the assessee an additional amount towards compensation for the period during which the Department had delayed the payment of refund, and interest thereon, to the assessee. The prayer in the original petition with regard to interest on interest cannot be granted - While the assessee would point out that, even if interest on interest was not granted, it was open to the Court to consider the issue of grant of appropriate compensation in lieu of interest on interest, insofar as the computation shown reveals that assessee has computed interest in accordance with the provisions of the Act for the entire period for which they had withheld the amounts due to the assessee by way of refund, there is no scope for the issuance of a direction to grant a compensation over and above the statutory interest that has already been reckoned for the purposes of computation of the amounts due to the assessee – Decided against assessee.
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