“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

DCIT-14(1)(1), Mumbai vs. Indian Oil Corporation Ltd, Mumbai

In the result, the appeal of the assessee is partly allowed and that of the revenue is dismissed

ITA 2752/MUM/2024[2009-10]Status: DisposedITAT Mumbai31 Dec 2024AY 2009-10

Bench: Shri Anikesh Banerjee & Smt. Renu Jauhriindian Oil Corporation V/S. Dcit-14(2)(1), Mumbai Ltd. बनाम Aaykar Bhavan, G-9, Ali Yavar Jung Marg, M.K.Road, Bandra (East), Mumbai-400020 Mumbai-400051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaaci1681G Appellant/अपीलार्थी .. Respondent/प्रतिवादी Dcit-14(2)(1), Mumbai V/S. Indian Oil Corporation Ltd. Aaykar Bhavan, बनाम G-9, Ali Yavar Jung Marg, M.K.Road, Bandra (East), Mumbai-400020 Mumbai-400051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaaci1681G Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Shri. Niraj D. ShethFor Respondent: Shri Krishna Kumar

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

date. 11. We have heard the rival submissions and considered the material placed before us. It is seen that section 244A dealing with interest on refund was amended by the Finance Act, 2016 and clause (aa) specifically providing for interest on self-assessment tax was introduced w.e.f. 01.06.2016. However, even ... therein, it has been held by various High Courts as well as co-ordinate benches of ITAT that the assessee is entitled to interest on refund arising out of excess amount paid as self- assessment tax. The insertion of subsection (aa) in section 244A(1) was made by the Finance

Indian Oil Corporation Ltd, Mumbai vs. DCIT 14(2)(1), Mumbai

In the result, the appeal of the assessee is partly allowed and that of the revenue is dismissed

ITA 2317/MUM/2024[2009-10]Status: DisposedITAT Mumbai31 Dec 2024AY 2009-10

For Appellant: Shri. Niraj D. ShethFor Respondent: Shri Krishna Kumar

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

Hindustan Petroleum Corporation Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 1(1)(1), Mumbai

ITA 4784/MUM/2024[2011-12]Status: DisposedITAT Mumbai30 Dec 2024AY 2011-12

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Ms. Aarti SatheFor Respondent: Shri Hemanshu Joshi

Section 143(3)Section 156Section 244ASection 250Section 254

that since Form-5 under DTVSVS was issued to the appellant (pertaining to different appeal), the appeal filed on 02/05/2018 (for not granting interest on refund as per provisions of law) shall be deemed to have been withdrawn without considering the fact that appeal dated 02/05/2018 was not surrendered under ... DTVSVS. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in not granting interest on refunds, despite our submission on following facts/grounds:- a. Notice under section 156 has not provided reasons/justification for not granting interest on refund. The interest

Atul Properties, Mumbai vs. ACIT, Circle 24(1), Mumbai

In the result, appeal filed by the assessee for assessment year

ITA 4966/MUM/2024[2010-11]Status: DisposedITAT Mumbai24 Dec 2024AY 2010-11

Bench: Hon’Ble Shri Sandeep Gosainvs. Acit, Circle – 24(1) Atul Properties Mumbai 5Th Floor, Trade Avenue, Suren Road, Andheri (E) Mumbai – 400093 Pan/Gir No. Aamfa3756F (Applicant) (Respondent)

Section 143(3)Section 154Section 244ASection 250

section 244A till payment is made. The aforesaid manner of computation is not only applicable to cases where the Revenue has to pay interest on refund, but is equally applied when an assessee is in default and interest is payable under section 220(2) of the Act. Interest payable under

Tata Sons Private Limited, Mumbai vs. Deputy Commissioner of Income Tax - 2(3)(1), Mumbai

In the result, both the appeals are allowed for statistical purposes

ITA 5109/MUM/2024[2008-2009]Status: HeardITAT Mumbai16 Dec 2024AY 2008-2009

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Sukhsagar Syal, A/RFor Respondent: Shri Hemanshu Joshi, Sr. D/R

Section 244ASection 251

circumstances of the case and in law, the NFAC ought to have held that the Id. Assessing Officer erred in not granting interest on refund from the date on which the order giving effect to the ITAT order was passed determining the refund to the date on which the actual ... length. Case records carefully perused. 5. The sum and substance of the quarrel is that the ld. AO erred in not granting interest on refund from the date on which the actual refund was credited to the assessee’s bank account and further erred in not adjusting the total refund

Tata Sons Private Limited, Mumbai vs. Deputy Commissioner of Income Tax - 2(3)(1), Mumbai

In the result, both the appeals are allowed for statistical purposes

ITA 5102/MUM/2024[2009-2010]Status: HeardITAT Mumbai16 Dec 2024AY 2009-2010

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Sukhsagar Syal, A/RFor Respondent: Shri Hemanshu Joshi, Sr. D/R

Section 244ASection 251

Glaxosmithkline Pharmaceuticals Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle -7(1)(1), Mumbai

In the result, both the appeals filed by the assessee for A

ITA 3306/MUM/2024[2000-01]Status: DisposedITAT Mumbai09 Dec 2024AY 2000-01

Bench: Ms. Kavitha Rajagopal, Jm & Shri Girish Agrawal, Am

For Appellant: Shri Anish Thacker &For Respondent: Shri. Ram Krishn Kedia (Sr. DR.)

Section 143(1)Section 143(3)Section 154Section 244ASection 244A(2)Section 250

such requirement is satisfied, to the extent of the period of delay so attributable to the assessee, he would be disentitled to claim interest on refund. The act of revising a return or raising a claim during the course of the assessment proceedings cannot be said to be the reasons

Glaxosmithkline Pharmaceuticals Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Mumbai

In the result, both the appeals filed by the assessee for A

ITA 3305/MUM/2024[1999-20]Status: DisposedITAT Mumbai09 Dec 2024AY 1999-20

Bench: Ms. Kavitha Rajagopal, Jm & Shri Girish Agrawal, Am

For Appellant: Shri Anish Thacker &For Respondent: Shri. Ram Krishn Kedia (Sr. DR.)

Section 143(1)Section 143(3)Section 154Section 244ASection 244A(2)Section 250

Manoj Kumar, Saharanpur vs. DCIT, Central Circle, Meerut

Appeal is partly allowed in above terms

ITA 3068/DEL/2024[2020-21]Status: DisposedITAT Delhi03 Dec 2024AY 2020-21

Bench: Shri Satbeer Singh Godaraassessment Year: 2020-21 Vs. Dcit, Sh. Manoj Kumar Contractor, Village- Bachiti Central Circle, Deoband, Saharanpur, Meerut Uttar Pradesh Pan :Bafpk0738P (Appellant) (Respondent) Assessee By None Department By Sh. Yogesh Sharma, Sr. Dr Date Of Hearing 05.11.2024 Date Of Pronouncement 03.12.2024

that the assessee had declared his net profit at the rate of 5.04% only which included interest from FDR’s as well as interest on refunds involving wearisome whereas the department has assessed at the rate of 6% after excluding the said twin heads. It is, therefore, deemed appropriate

Deposit Insurance and Credit Guarantee Corporation, Mumbai vs. CIT (A), NFAC, Delhi

In the result, the appeal by the assessee is allowed

ITA 1074/MUM/2024[2020-21]Status: DisposedITAT Mumbai08 Nov 2024AY 2020-21

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhaildeposit Insurance & Credit Guarantee Corporation, Dicgc, Second Floor, Rbi Building, Byculla, Mumbai Central, H.O. Mumbai – 400008, ............... Appellant Pan : Aaacd2094E V/S Dcit – 3(4) Mumbai – 400020 ……………… Respondent Maharashtra

For Appellant: Shri Rushabh MehtaFor Respondent: Smt. Sanyogita Nagpal, CIT-DR

Section 143(1)Section 143(3)Section 144BSection 244ASection 250

refund. The learned CIT(A), vide impugned order, partly allowed the appeal filed by the assessee and directed the AO to compute the interest on refund upto September 2022, i.e., the date on which the refund was granted. However, the learned CIT(A) dismissed the plea of the assessee regarding ... till the date of grant of refund in September 2022, the learned CIT(A), vide impugned order, directed the AO to issue the interest on refund due till the date of grant of refund as per the provisions of section 244A of the Act. As per the assessee

The Kalupur Commercial Co.-Operative Bank Ltd., Ahmedabad vs. The ACIT, Circle-1(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 126/AHD/2023[2011-12]Status: DisposedITAT Ahmedabad06 Nov 2024AY 2011-12

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, A.RFor Respondent: Shri Rignesh Das, Sr. DR

Section 143(1)Section 143(3)Section 147Section 154Section 234ASection 244ASection 244A(1)Section 250

demand adjusted against the order passed under section 143(3) and is in accordance with section 244A(1)(b), which allows interest on refunds of tax paid. The assessee submitted that the Assessing Officer (AO) incorrectly interpreted section 244A by only considering part of the provision and failed to apply ... Co.op. Bank Ltd. vs. ACIT Asst.Year –2011-12 - 5– (1) of the IT Act is applicable in the case of Appellant for getting interest on refund. Being more specific, clause (aa) section 244A (1) of the IT Act is especially applicable in the case of Appellant as the refund arises

Assistant Commissioner of Income Tax Circle 3(1)(1) Ahmedabad, Ahmedabad vs. Rajkamal Builders Infrastructure Private Limited, Ahmedabad

ITA 1467/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad28 Oct 2024AY 2018-19

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita Nos.1466/Ahd/2024 & 1467/Ahd/2024 िनधा"रण वष" /Assessment Years : 2017-18 & 2018-19 Respectively The Acit Rajkamal Builders बनाम/ Circle-3(1)(1) Infrastrucutre Pvt.Ltd. V/S. Ahmedabad – 380 015 54, Park Hill Nr.Heaven Park Ramdevnagar, Ahmedabad (Gujarat) – 380 015 "थायी लेखा सं./Pan: Aabcr 0326 A अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee By : Shri Mehul K. Patel, Ar Revenue By : Shri Ritesh Parmar, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 25/10/2024 घोषणा की तारीख /Date Of Pronouncement: /10/2024 आदेश/O R D E R Per Makarand V. Mahadeokar, Am:

For Appellant: Shri Mehul K. Patel, ARFor Respondent: Shri Ritesh Parmar, CIT-DR

Section 143(3)Section 144BSection 80I

Years : 2017-18 & 2018-19 respectively Other Disallowances 1. PF Contribution: Double Disallowance (AO) Rs.3,06,690/- of PF: Rs.16,78,098/- 2. Interest on Refunds: Rs.7,08,170/- Assessed Income Rs.12,50,69,991/- Rs.21,80,31,863/- (AO) CIT(A) Decision on Allowed in favor of the Allowed

Assistant Commissioner of Income Tax Circle 3(1)(1) Ahmedabad, Ahmedabad vs. Rajkamal Builders Infrastructure Private Limited, Ahmedabad

ITA 1466/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad28 Oct 2024AY 2017-18

For Appellant: Shri Mehul K. Patel, ARFor Respondent: Shri Ritesh Parmar, CIT-DR

Section 143(3)Section 144BSection 80I

Assistant Commissioner of Income Tax Circle 2(1) (1) Ahmedabad, Vejalpur Ahmedabad vs. Inductotherm (India) Private Limited, Ahmedabad

Appeal are dismissed

ITA 598/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad21 Oct 2024AY 2016-17

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

For Appellant: Ms. Chandni Shah, ARFor Respondent: Shri Prateek Sharma, Sr.DR

Section 115JSection 143(2)Section 143(3)Section 144C(3)Section 14ASection 195Section 40Section 92C

margin method approach. 2. On the facts and circumstances of the case and in law, the Ld. AO erred in not granting interest on refund under section 244A of the Act up to the date of the refund. It is therefore prayed that the Ld. AO be directed to grant ... interest on refund under section 244A of the Act upto the date of actual receipt of refund. The Assessee craves leave to add, alter, amend or withdraw all or any of the Cross Objections and to submit such statements, documents and papers as may be considered necessary either

Attachmate Corporation, Usa vs. ACIT, Circle 1(1)(1), International Taxation, New Delhi

In the result, the appeals are partly allowed

ITA 782/DEL/2023[2020-21]Status: DisposedITAT Delhi17 Oct 2024AY 2020-21

Bench: Shri Saktijit Dey, Vice- & Shri S Rifaur Rahman

Section 143(3)Section 144C(13)

Article 12(4)(b) of India – USA DTAA. 16. Besides the aforesaid issue, one more issue arising for consideration relates to computation of interest on refund under section 244A of the Act. 17. Before us, it is the contention of the assessee that interest under section 244A

Umesh Mahipatrai Adhiya, Mumbai vs. ITO 42(1)(4), Mumbai

In the result, the appeal is allowed for statistical purpose

ITA 643/MUM/2024[2016-17]Status: DisposedITAT Mumbai14 Oct 2024AY 2016-17

Bench: Smt Beena Pillai & Smt Renu Jauhri

For Respondent: Shri Dharamveer D. Yadav- SR. D.R

Section 143(3)Section 2Section 234BSection 250Section 271(1)(c)

income of Rs.8,27,850/- after making additions on account of deemed rent, disallowance of claim of agricultural income and interest on refund. The assessee filed an appeal before the Ld. CIT(A) against this order. Several notices were issued by the Ld. CIT(A), however, no compliance was made

Nirma Limited, Ahmedabad vs. The Dcti, Circle-3(1)(1) Now DCIT, Central Circle-2(2), Ahmedabad

Appeal of the assessee is allowed

ITA 475/AHD/2023[2013-14]Status: DisposedITAT Ahmedabad09 Oct 2024AY 2013-14

Bench: Mrs. Annapurna Gupta & Ms. Suchitra R. Kambleिनधा"रण वष"/Assessment Year: 2013-14 Nirma Limited, The Dy. Commissioner Of Vs. Nirma House, Ashram Road, Income-Tax, Ahmedabad-380 009 Circle-3(1)(1), Pan : Aaacn 5350 K Ahmedabad-380009 अपीलाथ" अपीलाथ"/ (Appellant) अपीलाथ" अपीलाथ" "" "" यथ" "" "" यथ" यथ"/ (Respondent) यथ" Assessee By : Shri Bandish Soparkar, Ar Revenue By : Shri Sanjay Kumar, Sr Dr सुनवाई क" तारीख/Date Of Hearing : 11.07.2024 घोषणा क" तारीख /Date Of Pronouncement: 09.10.2024 आदेश आदेश/O R D E R आदेश आदेश Per Annapurna Gupta: Present Appeal Has Been Filed By The Assessee Against The Order Of The Commissioner Of Income-Tax (Appeals)-12, Ahmedabad [Hereinafter Referred To As "Cit(A)" For Short] Dated 10.04.2023 Passed Under Section 250 Of The Income-Tax Act, 1961 [Hereinafter Referred To As "The Act" For Short], For The Assessment Year (Ay) 2013-14. 2. The Effective Ground Raised By The Assessee Is As Follows:-

For Appellant: Shri Bandish Soparkar, ARFor Respondent: Shri Sanjay Kumar, Sr DR

Section 139Section 140ASection 143Section 143(1)Section 143(3)Section 156Section 199Section 206CSection 244ASection 244A(1)

Limited Vs. DCIT AY : 2013-14 3. The solitary grievance of the assessee in the present appeal relates to refusal of grant of interest on refund of self-assessment tax in terms of provisions of Section 244A of the Act. The orders of the Revenue Authorities reveal that the same ... Reference was made to the proviso to Section 244A(1)(aa) of the Act which reads as under:- “Interest on refunds. 244A. (1) Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section, be entitled to receive

Co-Operative Cane Development Union Limited Maholi Ayyubi Chamber, Raniganj, Lakhimpur Kheri-262001, Lakhimpur Kheri vs. The Assistant Commissioner of Income Tax, Sitapur-New, Sitapur

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

ITA 164/LKW/2023[2014-15]Status: DisposedITAT Lucknow30 Sept 2024AY 2014-15

Bench: SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. Shubham Rastogi, C.AFor Respondent: Sh. Sanjeev Krishna Sharma, Addl CIT

Section 250Section 271(1)Section 271(1)(c)Section 274Section 80P

Assessing Officer observed that the assessee had earned interest amounting to Rs.10,11,998/- on FDRs / savings bank account and also interest on refund. He observed that the assessee had claimed a deduction under section 80P with regard to the interest on FDRs / savings bank account of Rs.10 ... shown the interest on refunds received by him during the year amounting to Rs.1,57,302/-. The ld. Assessing Officer added back the interest claimed for deduction under section 80P of Rs.10,11,998/- on FDRs / savings bank accounts in view of the judgment of the Hon’ble Supreme Court

Commercial House Pvt. Ltd., Kolkata vs. ITO, Ward - 6(1), Kolkata

The appeal of the assessee is partly allowed

ITA 601/KOL/2024[2017-18]Status: DisposedITAT Kolkata11 Sept 2024AY 2017-18

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rakesh Mishra

Section 249Section 253Section 270ASection 3Section 5

this appeal, there and only two substantive grounds, which are as under: (i)disallowance of 14A Rs.13,21,806/- (ii)Non-inclusion of interest on refund by appellant in income ………………………………………….Rs. 11,862/- 6.1. Undisputedly the exempt income of Rs.22,98,805/- received during the year is more than ... assessment order of Assessing Officer. Accordingly, ground raised on the issue is dismissed. 6.2. On second ground of non-receipt of interest on refund the reply has been perused. The appellant contends that it was not received instead got adjusted in the demand of the appellant, taking this kind

Dy. Commissioner of Income Tax-3(4), Mumbai vs. Idbi Bank Limited, Mumbai

In the result, the three appeals ITA no

ITA 4320/MUM/2023[2001-2002]Status: DisposedITAT Mumbai06 Sept 2024AY 2001-2002

Section 244ASection 244A(1)Section 250

Section 244A till payment is made. 16. The aforesaid manner of computation is not only applicable to cases where Revenue has to pay interest on refund, but is equally applied when an assessee is in default and interest is payable under Section 220(2) of the Act. Interest payable under