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Facts
The assessee, LIC Housing Finance Ltd., filed appeals challenging the denial of interest on a tax refund amounting to Rs. 11,16,71,928/- determined under the Direct Tax Vivad Se Vishwas Act, 2020. The refund was issued with a delay of approximately 20 months, prompting the claim for interest under Section 244A of the Income Tax Act.
Held
The Tribunal held that the assessee is entitled to interest on the delayed refund. Citing decisions from the Supreme Court and various High Courts, the Tribunal concluded that the Direct Tax Vivad Se Vishwas Act does not preclude the statutory right to interest on delayed refunds under Section 244A of the Income Tax Act, as the spirit of the scheme is comprehensive settlement.
Key Issues
Whether interest under Section 244A of the Income Tax Act is admissible on refunds determined under the Direct Tax Vivad Se Vishwas Act, 2020, when such refunds are delayed.
Sections Cited
244A, 154, DTVSV Act, 2020, 7, Section 3
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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)