Condonation of Delay in Tax Refund: Analyzing the Right to Interest

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..... which denied interest on a tax refund claim despite the delay being condoned. The central legal issues revolve around the application of Articles 226 and 227 of the Indian Constitution, provisions of the Income Tax Act, 1961, and the interpretation of various circulars and judicial precedents. Legal Analysis: 1. Legal Framework and Application: * Articles 226 and 227 of the Constitution of Ind .....

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..... 16A was critical in the delay. * The legality of denying interest on the refund, despite the delay being condoned, forms the crux of the matter. 3. Judicial Precedents and Interpretation: * The Supreme Court's decision in Union of India Through the Director of Income Tax v. Tata Chemicals Limited [2014 (3) TMI 610 - SUPREME COURT] is significant. It underscores the obligation of the state .....

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..... t balance the statutory provisions with the principles of fairness and the rights of taxpayers. * If the delay in filing the return and claiming the refund is not attributable to the taxpayer, then denying interest on the refund would seem unjust. * The case highlights the need for clear administrative guidelines and their consistent application to avoid such disputes. Conclusion: The decisi .....

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