“interest on refund”

InterestSection 244ASection 244A278 judgments

The decision most relied on for interest on refund is Sandvik Asia Ltd. v. CIT (280 ITR 643), cited in 96 judgments on BharatTax.

Leading authorities on interest on refund

Sandvik Asia Ltd. v. CIT

280 ITR 643 · 2006 · Supreme Court

citing judgments

Assessees are entitled to compensation for the inordinate delay by the Income Tax Department in refunding excess tax, which includes interest on the statutory interest due under section 244A for such delayed refunds.

Union of India v. Tata Chemicals Ltd.

363 ITR 658 · 2014 · Supreme Court

citing judgments

The Department has a moral and legal obligation to refund excess tax collected from taxpayers, along with interest. An assessee is entitled to interest on the amount of taxes refunded, including interest on interest, as per Section 244A of the Income-tax Act.

CIT v. Pfizer Ltd.

330 ITR 62 · 2011 · High Court

citing judgments

An insurance claim received on stock in trade constitutes business income and is not an independent source of income.

CIT v. Oriental Insurance Co. Ltd.

125 Taxmann 1094 · 2002 · High Court

citing judgments

Interest levied under Section 201(1A) for delayed remittance of Tax Deducted at Source (TDS) is compensatory in nature, not penal. It is a distinct provision for delayed remittance, similar to interest paid by Revenue on refunds.

CIT v. Gujarat Fluoro Chemicals

358 ITR 291 · 2013 · Supreme Court

citing judgments

An assessee is not entitled to interest on interest under section 244A of the Income-tax Act, particularly regarding interest granted on a refund.

Union Bank of India v. ACIT

72 Taxmann.com 348 · 2016 · ITAT

citing judgments

A tax refund must first be adjusted towards interest payable under Section 244A, with the balance then appropriated against the principal tax amount. This approach does not lead to interest on interest.

CIT v. HEG Ltd.

324 ITR 331 · 2010 · Supreme Court

citing judgments

Under Section 244A, the "amount due" for a refund includes both the principal tax and the interest accrued thereon up to the date the refund is granted. If the revenue fails to pay the full amount of refund, it is liable to pay further interest on the outstanding balance of this total refund, which does not constitute "interest on interest".

India Trade Promotion Organisation v. CIT

361 ITR 646 · 2014 · High Court

citing judgments

When a refund is due to an assessee under Section 244A, the amount must first be adjusted towards the interest payable on such refund, with the balance then adjusted against the tax amount refundable. This follows the principle of Section 140A(1) and means "any amount" in Section 244A includes accrued interest.

Judgments citing interest on refund

Raymond Ltd, Mumbai vs. DCIT RG 2(3), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 8642/MUM/2011[2000-01]Status: DisposedITAT Mumbai15 Jun 2022AY 2000-01

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhailita Nos. 8641 & 8642/Mum/2011 (A.Ys. 1999-2000 & 2000-01) Raymond Limited, Vs. The Dcit-2(3) New Hind House, Aayakar Bhavan, Narottam Morarjee Marg, M.K. Road, Ballard Estate, Mumbai – 400 020 Mumbai – 400 001 स्थायी लेखा सं./ जीआइआर सं./ Pan/Gir No: Aaacr4896A Assessee .. Revenue

For Appellant: Nitesh JoshiFor Respondent: Shri T. Shankar

Section 140ASection 14ASection 14A(2)Section 244A(1)(b)Section 80H

8642/Mum/2011 A.Ys. 1999-2000 & 2000-01 3 Raymond Limited Vs. The Deputy Commissioner of Income Tax-2(3) hence, interest on refund on account of self assessment tax ought to be granted. (c) The learned Commissioner of Income-tax (Appeals) erred in holding that the appellant is not entitled

Raymond Ltd, Mumbai vs. DCIT RG 2(3), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 8641/MUM/2011[1999-00]Status: DisposedITAT Mumbai15 Jun 2022AY 1999-00

For Appellant: Nitesh JoshiFor Respondent: Shri T. Shankar

Section 140ASection 14ASection 14A(2)Section 244A(1)(b)Section 80H

M/S Delhi International Airport Private Limited, Bangalore vs. Joint Commissioner of Income Tax(OSD) Central Circle-2(2), Bangalore

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 127/BANG/2022[2016-17]Status: DisposedITAT Bangalore09 Jun 2022AY 2016-17

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Sunil Jain, CAFor Respondent: Sri.Priyadarshi Mishra, Addl.CIT -DR

Section 115JSection 143(3)Section 154Section 234CSection 244ASection 250

Others in WP(C) 2659/2012 dated 14.03.2013, wherein, the Hon’ble High Court had held that the assessee cannot be denied interest on refund unless the delay is caused by the assessee’s fault. Further, the Hon’ble High Court held that even in cases where the assessee is rightly ... denied interest on refund, the A.O. has to provide a written explanation for the denial. When the refund was finally given on 27.07.2020, the A.O. ought to have calculated interest u/s 244A of the I.T.Act while granting refund (For the delayed refund by 29 months). The rectification order dated

State Bank of India Financial Reporting & Taxation Dept., Mumbai vs. ACIT Circle 2 (2)(1), Mumbai

In the result, appeal by the assessee is partly allowed

ITA 807/MUM/2019[2012-13]Status: DisposedITAT Mumbai26 May 2022AY 2012-13

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Ketan VedFor Respondent: Shri Shekhar L. Gajbhiye, CIT–DR

Section 143(3)Section 154Section 234DSection 244ASection 250

date is the date on which the refund is issued by the department. 19. At this stage it is relevant to note that interest on refunds is granted under section 244A. Sub-section (1) of this section provides that where refund of any amount becomes due to the assessee under ... money. This is clearly neither the intention nor the prescription of the provision. 20. It is of paramount importance to note that interest on refund is only a statutory right, which can be regulated strictly as per the prescribed provisions. There can be no question of granting any interest

Tata Communications Payment Solutions Ltd, Mumbai vs. DCIT Cir 14(3) (1), Mumbai

The appeal is dismissed

ITA 107/MUM/2022[2015-16]Status: DisposedITAT Mumbai23 May 2022AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm Tata Communications Payment The Dcit, Solutions Ltd. Circle 14(3)(1) Plot No.C21 & C36, Aayakar Bhavan, Vs. Bandra Kurla Complex, Mumbai-400 020 Mumbai-400 051 (Appellant) (Respondent) Pan No. Aadcb3924G Assessee By : Shri Heman Desai & Shri Kaikobad Damania, Ars’ Revenue By : Shri Amol Kirtane, Cit Dr Date Of Hearing: 12.05.2022 Date Of Pronouncement : 23.05.2022

For Appellant: Shri Heman Desai &For Respondent: Shri Amol Kirtane, CIT DR

Section 143(3)Section 244ASection 250Section 32(2)Section 72

pass any speaking order. With respect to the second issue of allowing interest under section 244A of the Act, he held that interest on refund is to be granted till the date of grant of refund and not till the date of issue of refund. Therefore, assessee is aggrieved with

M/S. Infosys Bpo Limited, Bangalore vs. The Deputy Commissioner of Income Tax, International Taxation, Circle-1(1), Bangalore

In the result, the appeal is allowed in favour of the assessee

ITA 988/BANG/2017[2016-17]Status: DisposedITAT Bangalore17 May 2022AY 2016-17

Bench: Shri N V Vasudevan & Ms. Padmavathy S

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT)

Section 195Section 195ASection 206ASection 248Section 9Section 9(1)(vi)

grossing up u/s 195A does not involve deduction of tax at source from the amount payable to the payer. 4.0 Grant of interest on refund 4.1 The learned CIT(A) 12, Bangalore has erred in not allowing interest on refund of TDS paid by the appellant ... funds. 4.2 The learned CIT(A) 12, Bangalore has erred in not appreciating that interest on refund of TDS is to be allowed as per CBDT Circular No. II of 2016 dated 26.4.2016 read with the decision of the Supreme Court in the case of UOI v TATA Chemicals

M/S. Infosys Bpo Limited, Bangalore vs. The Deputy Commissioner of Income Tax, International Taxation, Circle-1(1), Bangalore

In the result, the appeal is allowed in favour of the assessee

ITA 987/BANG/2017[2016-17]Status: DisposedITAT Bangalore17 May 2022AY 2016-17

Bench: Shri N V Vasudevan & Shri Padmavathy S

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri

Section 195Section 195ASection 206ASection 248Section 9Section 9(1)(vi)

grossing up u/s 195A does not involve deduction of tax at source from the amount payable to the payer. 4.0 Grant of interest on refund Page 3 of 13 4.1 The learned CIT(A) 12, Bangalore has erred in not allowing interest on refund of TDS paid by the appellant ... funds. 4.2 The learned CIT(A) 12, Bangalore has erred in not appreciating that interest on refund of TDS is to be allowed as per CBDT Circular No. II of 2016 dated 26.4.2016 read with the decision of the Supreme Court in the case of UOI v TATA Chemicals

Dy CIT, Circle-4(3)(1), Mumbai vs. M/S. Jefferies India P. Ltd., Mumbai

In the result, the appeal filed by the revenue is hereby dismissed and cross objection filed by the assessee is hereby partly allowed

ITA 457/MUM/2021[2014-15]Status: DisposedITAT Mumbai11 Apr 2022AY 2014-15

Bench: Shri Amarjit Singh, Jm & Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.457/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2014-15) Dcit, Cir 4(3)(1) बिधम/ M/S. Jefferies India Pvt. Ltd. Room No.649, 6Th Floor, 42 & 43, 2 North Avenue, Vs. Aayakar Bhavan, M. K. Bandra-Kurla Complex, Bandra (E), Mumbai- Road, Mumbai-400020. 400051. & Cross Objection No.151/Mum/2021 आयकर अपील सं/ I.T.A. No. 457/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2014-15) M/S. Jefferies India Pvt. Ltd. बिधम/ Dcit, Cir 4(3)(1) Room No.649, 6Th Floor, 42 & 43, 2 North Avenue, Vs. Bandra-Kurla Complex, Aayakar Bhavan, M. K. Bandra (E), Mumbai- Road, Mumbai-400020. 400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabcj7850R (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Achal Sharma Assessee By: Shri M.P. Lohia/Nikhil Tiwari सुनवाई की तारीख / Date Of Hearing: 24/02/2022 घोषणा की तारीख /Date Of Pronouncement: 11/04/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue As Well As Assessee Have Filed The Above Mentioned Appeal As Well As Cross-Objection Against The Order Dated 05.02.2020 Passed By The Commissioner Of Income Tax (Appeals)-22, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2014-15. C.O. No.151/Mum/2021 A.Y.2014-15

For Appellant: Shri M.P. Lohia/Nikhil TiwariFor Respondent: Shri Achal Sharma

Section 143(2)Section 145(1)

facts and in the circumstances of the case and in res: ect of short grant of Interest on refund the learned AO has: 5. erred in granting short interest on refund under section 244A of the Act, by not following the correct methodology laid down under section 244A r.w.s. 140A

Bank of Baroda(E-Dena Bank), Mumbai vs. The Pr. CIT - 2, Mumbai

In the result, appeal by the assessee is allowed

ITA 1685/MUM/2020[2015-16]Status: DisposedITAT Mumbai11 Apr 2022AY 2015-16

Bench: Shri Vikas Awasthy & Shri M. Balaganeshआअसं.1685/मुं/2020 ("न. व. 2015-16) Bank Of Baroda (E-Dena Bank) 2Nd Floor, Accounts & Taxation Dept. C-26, G-Block, Baroda Corporate Centre, Bandra Kurla Complex, Bandra (E), Mumbai- 400 051 Pan: Aaacd-4249-B ...... अपीलाथ" /Appellant बनाम Vs. The Principal Commissioner Of Income -2, Aaykar Bhavan, M.K. Road, Mumbai 400 020. ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Ananthan & Ms. Lalitha Rameswaram ""तवाद" "वारा/Respondent By : S/Shri Rahul Raman & Milind Chavan सुनवाई क" "त"थ/ Date Of Hearing : 14/01/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 11/04/2022 आदेश/ Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Order Of Principal Commissioner Of Income Tax -2, Mumbai ( In Short ‘The Pcit-2’) Dated 13/03/2020 For Assessment Year 2015-16 Passed Under Section 263 Of The Income Tax Act, 1961 ( In Short ‘The Act’).

For Appellant: Shri Ananthan &For Respondent: S/Shri Rahul Raman & Milind Chavan

Section 115JSection 142(1)Section 143(3)Section 14ASection 263Section 43B

assessee is reproduced for the sake of completeness: “Commission on Letters of Credit/Bank Guarantees/Government Business/Distribution of Insurance Policies/Mutual Fund Products/ASBA, Locker Rent,Interest on Refund of Taxes, Dividend Income on units of Mutual Funds, Rental Income and Service Charges on various Deposit Accounts are recognized on realization basis.” Thus, from

Tata Sons Ltd., Mumbai vs. DCIT Cir. - 2(3)(1), Mumbai

In the result, assessee’s appeal is partly allowed and revenue’s appeal is dismissed

ITA 6418/MUM/2016[2010-11]Status: DisposedITAT Mumbai21 Jan 2022AY 2010-11

Bench: Shri S.Rifaur Rahman ( & Shri Pavan Kumar Gadale ()

For Appellant: 1) Transfer Pricing Adjustment - Guarantee Fees

Section 115JSection 143(1)Section 143(3)Section 14ASection 37Section 92C

question No.2 we do not find that it is a substantial question of law. The Tribunal found that the Assessee Bank received interest on refund of taxes paid. It also paid interest on the taxes which were payable. The Assessee sought to set off the interest paid against the interest

ACIT, Cir.-2(3)(1), Mumbai vs. Tata Sons Ltd., Mumbai

In the result, assessee’s appeal is partly allowed and revenue’s appeal is dismissed

ITA 6402/MUM/2016[2010-11]Status: DisposedITAT Mumbai21 Jan 2022AY 2010-11

Bench: Shri S.Rifaur Rahman ( & Shri Pavan Kumar Gadale ()

For Appellant: 1) Transfer Pricing Adjustment - Guarantee Fees

Section 115JSection 143(1)Section 143(3)Section 14ASection 37Section 92C

Grasim Industries Ltd.(Successor to Aditya Birla Nuvo Ltd.), Mumbai vs. The Dy CIT CC-1(4), Mumbai

ITA 2053/MUM/2020[2012-13]Status: DisposedITAT Mumbai14 Jan 2022AY 2012-13

Bench: Shri Pramod Kumar & Shri Kuldip Singh

For Appellant: Shri Ronak Doshi, A.RFor Respondent: Shri Harkamal Sohi Sandhu, D.R

Section 154Section 244ASection 250

read with order dated 31.05.2019 under section 154 of the Act for A.Y. 2012- 13 and for A.Y. 2013-14, the AO granted interest on refund to the tune of Rs.67,65,944/- under section 244A of the Act vide order dated 26.09.2018 read with order dated 31.05.2019 passed under

Classic Auto Tubes Ltd., New Delhi vs. Addl. CIT, Special Range- 2, New Delhi

The appeal of the assessee is partly allowed

ITA 7815/DEL/2017[2014-15]Status: DisposedITAT Delhi11 Nov 2021AY 2014-15

Bench: Ms Suchitra Kamble & Dr. B. R. R. Kumar(Through Video Conferencing) Vs Classic Auto Tubes Ltd. Addl. Cit 414/1, 4Th Floor, Dda Special Range-2 Commercial Complex, District New Delhi Centre, Janak Puri, New Delhi Pan: Aaccc6993K (Appellant) (Respondent) Appellant By Sh. M. K. Giri, Adv Respondent By Sh. Umesh Takyar, Sr. Dr

Section 3Section 32(1)Section 32(1)(iia)

Assessing Officer also made addition of Rs. 62,917/- on account of undisclosed income/TDS as well as Rs. 23,75,190/- towards interest on refund. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee

Addl. CIT, Special Range-7, New Delhi vs. Pec Ltd., New Delhi

Accordingly, assessing officer is directed to delete this addition and ground of appeal 2 is allowed

ITA 6446/DEL/2017[2013-14]Status: DisposedITAT Delhi20 Oct 2021AY 2013-14

Bench: Shri O.P. Kant & Shri Kuldip Singh

For Appellant: Shri Damanpreet Singh, CAFor Respondent: Shri Anil Gandhi, Senior DR

Section 135Section 37Section 37(1)

case. 2. On the facts and in the circumstances of the case, the Ld. CIT (A) has erred in deleting addition of interest on refund of income tax amounting to Rs.30,54,780/- without going into the merit of the case.” 2. Briefly stated the facts necessary for adjudication ... made addition thereof to the income of the assessee. 4. AO also made addition of Rs.30,54,780/- on account of amount of interest on refund of income-tax on the ground that interest on income-tax refund is a taxable income and thereby framed the assessment at the total

Bimla Devi, New Delhi vs. ACIT, Circle-50(1), New Delhi

In the result the appeal of the assessee is allowed

ITA 6992/DEL/2017[2014-15]Status: DisposedITAT Delhi08 Oct 2021AY 2014-15

Bench: Shri Amit Shukla & Shri Prashant Maharishiasstt. Year : 2014-15

For Appellant: Shri Raja Ram Gupta, AdvocateFor Respondent: Shri K.A. Manu, Sr. DR

Section 140Section 140ASection 143(3)Section 244Section 244ASection 244A(1)(a)

purpose of business. Such adhoc disallowance cannot be sustained and the same is directed to be deleted. 6. On the issue of interest on refund on self assessment tax and advance tax u/s 244A, from the perusal of the records and written submissions filed by the Ld. Counsel, the facts ... original return that the same has been refunded as a result of revised returns. The appellant was in appeal to allow the interest on refundable amount in terms assessment of order u/s 143(3). 7. From the perusal of section 244A, it is seen that the interest is payable

Awp Assistance (India) Pvt. Ltd., Gurgaon vs. DCIT, Circle- 1(1), Gurgaon

In the result, the appeal of the assessee is allowed

ITA 6585/DEL/2017[2013-14]Status: DisposedITAT Delhi08 Apr 2021AY 2013-14

Bench: Shri G.S. Pannu & Shri Kul Bharatassessment Year : 2013-14 Awp Assistance (India) Pvt. Ltd., Dcit, 1St Floor, Dlf Square, M-Block, Vs Circle-1(1), Jacaranda Marg, Dlf City, Gurgaon. Phase-Ii, Gurgaon-122002. Pan-Aafcm1460J Appellant Respondent Appellant By Sh. Salil Kapoor, Adv. & Ms. Saumya Singh, Adv. Respondent By Sh. Ashok Gautam, Sr. Dr Date Of Hearing 31.03.2021 Date Of Pronouncement 08.04.2021

Section 143(3)Section 154Section 244A

issue, had noticed as under : "6. We have considered the rival submissions carefully on this issue. Section 244A deals with the grant of interest on refund of any amount of tax which becomes due to the assessee in terms of the provisions of Act. Clauses ... light of the factual matrix involved therein and in none of the cases, the issue whether the assessee was entitled to interest on refund of self-assessment tax paid under section 140A of the Act in terms of section 244A or not, was under consideration. Thus, no advantage

CIT vs. Engineers India Ltd

In the result, the appeal is

ITA - 300 / 2012HC Delhi26 Feb 2015

Section 10(33)Section 140ASection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 199Section 244ASection 244A(1)(a)

Finance Act, 2005 w.e.f. 01.04.2006, to the 2015:DHC:1817-DB ITA 300/2012 Page 6 of 21 extent relevant, reads as under: “244A. Interest on refunds. (1)Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section ... interpretation of Section 244(1)(b) read with the explanation appended thereto. The issue was whether the said clause excludes payment of interest on refund of self-assessment tax. Relying upon the afore-quoted observations of Supreme Court in the case of Sandvik Asia Limited (supra) and finding support from

Commissioner of Income Tax Delhi Central III vs. Moni Kumar Subba

ITA - 499 / 2008HC Delhi30 Mar 2011

Section 143(1)

well in the case of Commissioner of Income Tax Vs. Asian Hotels Limited [(2008) 215 CTR (Del.) 84] holding that the notional interest on refundable security, if deposited, was neither taxable as profit or gain from business or profession under Section 28(iv) of the Act or income from house