“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

Weatherford Oil Tools M E Ltd., Dehradun vs. DCIT, Circle- 2, Intl. Taxation, Dehradun

ITA 7334/DEL/2017[2013-14]Status: DisposedITAT Dehradun28 Apr 2025AY 2013-14

Bench: Sh. Satbeer Singh Godara & Sh. M. Balaganesh

For Appellant: Sh. Salil Kapoor, Sh. Anil ChachraFor Respondent: Sh. Mithun Shete, Sr. DR

Section 1Section 92D

East Limited vs. ACIT (ITA No. 1 of 2010). Since there was PE of the Appellant in India, the income earned out of interest on refunds from Income Tax Department cannot be brought to tax on gross basis under DTAA. Hence, the Appeal on this ground is, therefore, dismissed

Shree Yadvesh Transport Co . Pvt Ltd, Mumbai vs. ITO, Ward 13(2)(1), Mumbai

In the result the appeal filed by the assessee stands allowed

ITA 6877/MUM/2024[2016-17]Status: DisposedITAT Mumbai22 Apr 2025AY 2016-17

Bench: Smt. Beena Pillai () & Smt. Renu Jauhri ()

Section 115JSection 142(1)Section 143(2)Section 271(1)(c)Section 32

Ld.AO. After examination considering the submission of the assessee, the excess claim of depreciation of Rs.28,04,248/- was disallowed. The interest on refund of Rs.77,727/- was also added to the total income of the assessee. For these defaults, notice u/s 274 r.w.s ... assessee that resulted in higher claim of depreciation. He just prayed for the penalty to be deleted on discount. 5.2. In respect of interest on refund the Ld. AR submitted that the entry was wrongly made under different head and therefore went unnoticed. The Ld.AR submitted that the assessee made

Dwaraka Pershad Radhey Ramanlal, Secunderabad vs. ACIT., Circle-10(1), Hyderabad

In the result, appeal of the assessee is partly allowed

ITA 1134/HYD/2024[2017-18]Status: DisposedITAT Hyderabad07 Apr 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA C SureshFor Respondent: Dr. Sachin Kumar, Sr. AR

Section 142(1)Section 143(2)Section 143(3)

contract receipts and determined profits from business at Rs.49,33,339/- and by making addition on account of interest on FDs and interest on refund at Rs.18,89,943/-, determined the total income of the assessee at Rs.68,83,282/- as against the returned income of the assessee at Rs.32

M.N. Rangamani, Chennai vs. Income Tax Officer, Corporate Ward - 2(1), Chennai

In the result, the appeal filed by the assessee is dismissed

ITA 2383/CHNY/2024[AY 2011-12]Status: DisposedITAT Chennai07 Apr 2025

Bench: Shri Manu Kumar Giri & Shri Jagadishआयकर अपील सं./Ita No.2383/Chny/2024 िनधा9रण वष9 /Assessment Year: 2011-12

For Appellant: Shri M.N.Rangamani, C.A HIFor Respondent: Ms. Pushpa Hemachand, JCIT

Section 143(1)Section 154Section 244A

payment of interest. 2.1 The CIT(A) has erred in dismissing the appeal for allowing compensation for the inordinate delay in payment of interest on refund. The compensation calculated up to June 2023 amounts to Rs.11,40,257. The compensation will be Rs. 17,25,451 calculated ... against the order of Ld. CIT(A) in dismissing the appeal of assessee for allowing compensation for the inordinate delay in payment of interest on refund . 4. The assessee filed return of income declaring income of Rs.19,76,366/-. The return of income was processed

Angamaly Service Cooperative Bank Ltd No 714, Angamaly vs. Income Tax Officer, Ward 1 and Tps, Aluva

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

ITA 710/COCH/2024[2019-20]Status: DisposedITAT Cochin02 Apr 2025AY 2019-20

Bench: Shri Inturi Rama Rao & Shri Keshav Dubeyassessment Year: 2019-20 Angamaly Service Co-Operative Bank Ltd. No.714, Angamaly So Vs. Ernakulam Ito Ward-1 & Tps Kerala 683 572 Aluva Pan No : Aacaa1050B Appellant Respondent Appellant By : None. Respondent By : Smt. Leena Lal, Sr. D.R. Date Of Hearing : 28.01.2025 Date Of Pronouncement : 02.04.2025 O R D E R Per Keshav Dubey: This Appeal At The Instance Of The Assessee Is Directed Against The Order Of Cit(A)/Nfac Dated 21.6.2024 Vide Din & Order No. Itba/Nfac/S/250/2024-25/1065923392(1) For The Ay 2019-20. 2. The Assessee Has Raised The Following Grounds Of Appeal: Angamaly Service Co-Operative Bank Ltd., Angamaly Page 2 Of 6

For Appellant: NoneFor Respondent: Smt. Leena Lal, Sr. D.R

Section 119(2)(b)Section 139Section 139(1)Section 142(1)Section 143(2)Section 147Section 148Section 80ASection 80P

section 119 of the Act r.w.s. CBDT Circular No. 13/2023, dated 26.07.2023 with a direction that the assessee is not eligible for interest on refund if any, arising on such return of income filed belatedly. 9.2 Being so, in the interest of justice and equity, we remit the issue

Printography Systems (India) Pvt Ltd, Mumbai vs. ACIT Circle 13(1)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 6944/MUM/2024[2017-18]Status: DisposedITAT Mumbai01 Apr 2025AY 2017-18

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarprintography Systems V/S. Assistant Commissioner (India) Pvt. Ltd., Plot No. बनाम Of Income Tax, Circle – 13-D, Kurla Industrial Estate, 13(1)(2), Aayakar Bhavan, Narayan Nagar Nss Road, Mumbai - 400020, Ghatkopar (West), Mumbai - Maharashtra 400 086, Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aadcp4900G .. Appellant/अपीलार्थी Respondent/प्रतिवादी

For Appellant: Shri Rajesh Shah,CAFor Respondent: Shri Mahesh Pamnani(Sr. DR)

Section 115BSection 143(3)Section 68

were declared in the Return of Income. 5. On the facts and circumstances of the case, learned ADDI/JCIT(A) erred in confirming the interest on refund of Rs. 14,60,993 though it has accepted that the appellant had declared interest income of Rs.14,60,993 in the Return

Dharrit Shah, Pune vs. ACIT Cir-6 Pune, Pune

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2260/PUN/2024[2017-18]Status: DisposedITAT Pune20 Mar 2025AY 2017-18

Bench: Dr.Manish Borad & Ms. Astha Chandraआयकर अपील सं. / Ita No.2260/Pun/2024 Assessment Year : 2017-18

For Appellant: Shri Rajiv ThakkarFor Respondent: Shri Vishal A. Makawane

Section 143(1)Section 143(2)Section 143(3)Section 194ASection 250Section 36(1)(va)Section 41(1)Section 69C

following additions aggregating to Rs.35,62,320/-, the details of which are as under : 1. Addition of Rs.11,979/- on account of interest on refund. 2. Addition of Rs.3,78,940/- on account of Agricultural income not supported by any evidences. 3. Addition of Rs.25,716/- u/s.36

The Dy.CIT, Central Circle-2(1), Ahmedabad vs. M/S. Zydus Lifesciences Limited (Formerly Known As M/S. Cadila Healthcare Ltd.), Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 530/AHD/2023[2010-11]Status: DisposedITAT Ahmedabad07 Mar 2025AY 2010-11

Bench: DR. BRR KUMAR (Vice President), SHRI SIDDHATHA NAUTIYAL (Judicial Member)

Section 115Section 115JSection 143(1)Section 143(3)Section 154Section 244ASection 244A(1)(b)Section 250Section 61

termed as an advance tax as envisaged u/s 207 or a self-assessment tax as per Section 140A of the Act. Hence, the interest on refund related to DDT paid in excess is covered under the residual clause as envisaged u/s 244A(1)(b) of the Act and is therefore

ACIT 6(3), Mumbai vs. Grasim Industries Ltd, Mumbai

ITA 4385/MUM/2009[2006-07]Status: HeardITAT Mumbai25 Feb 2025AY 2006-07

Section 143(2)Section 143(3)Section 24Section 43B

said that legal right was not acquired on the date of refund. The effect of assessment under section 143(3) would be that interest on refund under section 244A would get substituted in terms of sub-section (3) of section 244A without affecting right already accrued ... interest if assessed can be rectified under section 154. 15. In view of the above discussion, we are of the view that interest on refund under section 244A(1) would be assessable in the year in which it is granted and not in the year in which proceedings under section

Grasim Industries Ltd ( Corporate Finance Division), Mumbai vs. Addl CIT RG 6(3), Mumbai

ITA 3762/MUM/2009[2006-07]Status: DisposedITAT Mumbai25 Feb 2025AY 2006-07

Bench: the CIT(A). The CIT(A) partly allowed the appeal preferred by the Assessee vide order, dated 18/05/2009. 4. Not being satisfied with the relief granted by the Id. CIT(A), the Assessee has preferred appeal before this Tribunal. The Revenue has also filed cross-appeal challenging the relief granted by the Id. CIT(A).

For Appellant: Shri J. D. Mistry Sr. AdvocateFor Respondent: Shri Kishor Dhule

Section 143(2)Section 143(3)Section 24Section 43B

Deputy Commissioner of Income Tax, Circle-1, Bareilly vs. Ms Varuna Warehousing Private Limited, Bareilly

In the result, the appeal of the Revenue stands dismissed

ITA 276/LKW/2024[2020-21]Status: DisposedITAT Lucknow20 Feb 2025AY 2020-21

Bench: Shri Kul Bharat & Shri Anadee Nath Misshraassessment Year: 2020-21 Dcit, Circle-1 M/S Varuna V. Aaykar Bhavan, Kamla Nehru Warehousing Pvt Ltd Marg, Rampur Garden, Civil Shyam Ganj, Near Amar Lines, Uttar Pradesh-243001. Ujala Press, Uttar Pradesh-243005. Pan: Aaecc5529M (Appellant) (Respondent) C. O. No. 23/Lkw/2024 (In Arising Out Of Ita. No. 276/Lkw/2024) Assessment Year: 2020-21 M/S Varuna Warehousing Pvt Dcit, Circle-1 V. Ltd Aaykar Bhavan, Kamla Shyam Ganj, Near Amar Ujala Nehru Marg, Rampur Press, Uttar Pradesh-243005. Garden, Civil Lines, Uttar Pradesh-243001. Pan: Aaecc5529M (Appellant) (Respondent) Appellant By: Shri Rakesh Garg, Adv Respondent By: Shri Sanjeev Krishna Sharma, Addl. Cit(Dr) Date Of Hearing: 11 02 2025 Date Of Pronouncement: 20 02 2025 O R D E R

For Appellant: Shri Rakesh Garg, AdvFor Respondent: Shri Sanjeev Krishna Sharma, Addl

Section 119(2)(b)Section 154Section 244

grounds in cross objection: - “1. Because the CIT(A)/NFAC has erred on facts and in law in not directing for payment of interest on refund amount of Rs.79,72,554/while directing to issue the refund, the CIT(A)/NFAC, should ought to have directed for issue for refund with

The Deesa Merchantile Co.Op.Society Ltd., Deesa vs. The Dy.CIT., Circle Palanpur, Palanpur

In the result, appeal filed by the assessee is partly allowed

ITA 108/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad20 Feb 2025AY 2017-18

Bench: Ms. Suchitra Kamble & Shri Makarand Vasant Mahadeokarassessment Year: 2017-18

Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

Rs.1,34,17,751/- under Section 80P(2)(a)((i) of the Act. The Assessing Officer also made addition of Rs.7,200/- towards interest on refunds. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee

ACIT 6(3), Mumbai vs. Grasim Industries Ltd, Mumbai

In the result, appeal of the Department is dismissed

ITA 6307/MUM/2010[2007-08]Status: DisposedITAT Mumbai18 Feb 2025AY 2007-08

Bench: Shri Saktijit Dey, Vp & Shri N.K. Billaiya, Am

For Appellant: Shri J.D. Mistri, Sr. AdvocateFor Respondent: Shri Dr. Kishor Dhule, CIT(DR)

substantial question of law. The Tribunal found that the Assessee Bank 16 ITA No.5925 & 6307/Mum/2010 Α.Υ. 2007-08 Grasim Industries Ltd. 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

Grasim Industries Ltd, Mumbai vs. Addl CIT RG 6(3), Mumbai

In the result, appeal of the Department is dismissed

ITA 5925/MUM/2010[2007-08]Status: DisposedITAT Mumbai18 Feb 2025AY 2007-08

Bench: Shri Saktijit Dey, Vp & Shri N.K. Billaiya, Am

substantial question of law. The Tribunal found that the Assessee Bank 16 ITA No.5925 & 6307/Mum/2010 A.Y. 2007-08 Grasim Industries Ltd. 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

Dy. Commissioner of Income Tax(Exemptions), Circle-1, Bengaluru vs. Infosys Employee Benefits Trust, Bengaluru

In the result, the appeal filed by the revenue is dismissed

ITA 2214/BANG/2024[2021-22]Status: DisposedITAT Bangalore11 Feb 2025AY 2021-22

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.Assessment Year : 2021-22

For Appellant: Shri Sudheendra B R, CAFor Respondent: Smt. Neha Sahay, JCIT-DR

Section 10Section 143(1)Section 154Section 199Section 244A

claimed in the Return of income and reflected in Form no. 26AS for the relevant Assessment Year. 3 Section 244A - Interest on Refund 3.1 The Assistant Director of Income Tax, CPC, Bangalore has erred in not providing additional interest under section 244A on account of additional TDS credit. On facts ... Page 4 of 7 circumstances of the case, the Appellant is entitled to additional interest on refund under section 244A. 4 Section 251 - Prayer 4.1 In view of the above and other grounds to be adduced at the time of hearing, the appellant prays that the Intimation passed under section

Assistant Commissioner of Incometax, Mumbai vs. Viacom18 Media Pvt Ltd, Mumbai

Appeals of the assessee are allowed partly for statistical purposes whereas appeal of the Revenue is dismissed

ITA 4658/MUM/2024[2011-12]Status: DisposedITAT Mumbai23 Jan 2025AY 2011-12

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Ms. Kanupriya Damor, Sr. DRFor Respondent: Ms. Moksha Mehta

Section 153(5)Section 244A

assessee are reproduced 07. The grounds raised by the assessee are reproduced as under: Non-grant of additional grant of additional interest on refund u/s. 244A (1 interest on refund u/s. 244A (1A): 1. erred in rejecting the ground of the Appellant of non rejecting the ground of the Appellant ... grounds raised by the assessee are reproduced as 12. The grounds raised by the assessee are reproduced as under: Non-grant of additional interest on refund u/s. 244A (1A): grant of additional interest on refund u/s. 244A (1A): grant of additional interest on refund u/s. 244A (1A): 1. erred

Viacom 18 Media Pvt Ltd, Mumbai vs. Assistant Commissioner of Income Tax-16(1), Mumbai

Appeals of the assessee are allowed partly for statistical purposes whereas appeal of the Revenue is dismissed

ITA 4608/MUM/2024[2011-12]Status: DisposedITAT Mumbai23 Jan 2025AY 2011-12

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Ms. Kanupriya Damor, Sr. DRFor Respondent: Ms. Moksha Mehta

Section 153(5)Section 244A

Viacom 18 Media Pvt Ltd, Mumbai vs. Assistant Commissioner of Income Tax-16(1), Mumbai

Appeals of the assessee are allowed partly for statistical purposes whereas appeal of the Revenue is dismissed

ITA 4606/MUM/2024[2006-07]Status: DisposedITAT Mumbai23 Jan 2025AY 2006-07

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Ms. Kanupriya Damor, Sr. DRFor Respondent: Ms. Moksha Mehta

Section 153(5)Section 244A

T vs. Upasana Limited, Chennaivs.ITO, Corporate Ward-6(1), Chennai

The appeal stand allowed in terms of our above order

ITA 2475/CHNY/2024[2020-21]Status: DisposedITAT Chennai09 Jan 2025AY 2020-21

Bench: Hon’Ble Shri George George K., Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.2475/Chny/2024 (िनधा"रण वष" / Assessment Year: 2020-21) M/S.Tvs Upasana Limited Ito 98-A, 7Th Floor, Auras Corporate Centre, बनाम/ Corporate Ward-6(1) Dr.Radha Krishnan Salai, Mylapore, Chennai. Vs. Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Tan No. Aaaca-5460-F (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : S/Shri K. Srinivasan & P. Viswanathan (Cas) – Ld. Ars ""थ"कीओरसे/Respondent By : Ms. Sandhya Rani Kure (Jcit) -Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 08-01-2025 घोषणाकीतारीख /Date Of Pronouncement : 09-01-2025 आदेश / O R D E R Manoj Kumar Aggarwal ()

For Appellant: S/Shri K. Srinivasan & P. ViswanathanFor Respondent: Ms. Sandhya Rani Kure (JCIT) -Ld. Sr. DR

Section 143(1)Section 154Section 244A

matter of an intimation issued by CPC u/s 154 of the Act. The sole grievance of the assessee is computation of interest on refund. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. The assessee filed return of income ... Court of Delhi in the case of Nokia Solutions and Networks India (P) Ltd. vs. Addl. CIT (169 Taxmann.com 537) has held that interest on refund is to be calculated till the date the funds are released to the assessee and not till the date of order accepting the assessee

Qubix Business Park Private Limited, Pune vs. Deputy Commissioner of Income Tax, Circle-8, Pune

In the result, Ground No.2 of the assessee is allowed for statistical purpose

ITA 1994/PUN/2024[2020-21]Status: DisposedITAT Pune06 Jan 2025AY 2020-21

Bench: DR.DIPAK P. RIPOTE (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)

Section 115JSection 143(3)Section 144BSection 144C(13)Section 144C(5)Section 80

234C of the Act. 10. Erroneous non-grant of interest under section 244A of the Act The NFAC / Ld.AO erred in not granting interest on refund under section 244A of the Act. 11. Initiation of penalty proceedings under section 274 read with 270A of the Act The NFAC / Ld.AO erred