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Facts
The assessee, LIC Housing Finance Ltd., claimed interest under Section 244A of the Income-tax Act on tax refunds determined under the Direct Tax Vivad Se Vishwas Act, 2020, due to a significant delay (over 20 months) in issuing the refunds. The Assessing Officer and CIT(A) rejected the claim, stating that Section 244A was not applicable to refunds arising from the Vivad Se Vishwas scheme.
Held
The Tribunal allowed the assessee's claim, holding that the assessee is entitled to interest on delayed refunds. It relied on Supreme Court and High Court judgments which established the principle that the government is obligated to pay interest on money retained without right, and that the Vivad Se Vishwas Act does not implicitly exclude the applicability of Section 244A for interest on refunds.
Key Issues
Whether Section 244A of the Income-tax Act is applicable for calculating interest on delayed refunds issued under the Direct Tax Vivad Se Vishwas Act, 2020.
Sections Cited
Section 244A, Direct Tax Vivad Se Vishwas Act, 2020, Section 154
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Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI PRABHASH SHANKAR
PER PRABHASH SHANKAR [A.М.] :- The above captioned appeals have been filed by the assessee against the orders of even date passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)