“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

Dy. Commissioner of Income Tax, Mumbai vs. Idbi Bank Limited, Mumbai

In the result, the three appeals ITA no

ITA 4319/MUM/2023[2012-2013]Status: DisposedITAT Mumbai06 Sept 2024AY 2012-2013

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

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

In the result, the three appeals ITA no

ITA 4318/MUM/2023[2013-2014]Status: DisposedITAT Mumbai06 Sept 2024AY 2013-2014

Section 244ASection 244A(1)Section 250

Paharpur Cooling Towers Limited., Kolkata vs. ACIT, CC-2(1), Kolkata

In the result, the appeal of the assessee stands dismissed

ITA 408/KOL/2023[2013-14]Status: DisposedITAT Kolkata04 Sept 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. No.408/Kol/2023 Assessment Year: 2013-14 Paharpur Cooling Towers Ltd………...........………………....Appellant 8/1/B, Diamond Harbour Road, Kolkata – 700027. [Pan: Aabcp8017C] Vs. Acit, Central Circle-2(1), Kolkata.…….…............................…..…..... Respondent Appearances By: Shri Nitesh Agarwal, Ar, Appeared On Behalf Of The Assessee. Shri Sailen Samaddar, Addl. Cit- Sr. Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : June 06, 2024 Date Of Pronouncing The Order : September 04, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 23.02.2023 Of The Commissioner Of Income Tax (Appeals)- 20, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Appeal Is Time Barred By Two Days. A Separate Application For Condonation Of Delay Has Been Filed. Considering The Shortness Of Delay, The Delay In Filing The Appeal Is Hereby Condoned.

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

taken as many as five grounds of appeal, however, the sole issue raised in this appeal is whether the assessee is entitled to interest on refund of the taxes overpaid u/s 244A of the Act. I.T.A. No.408/Kol/2023 Assessment Year: 2013-14 Paharpur Cooling Towers Ltd 4. The brief facts ... less than 10% of the gross tax. He, therefore, noted that as per proviso to section 244A, the assessee was not eligible for interest on refund, as the refund amount was less than 10% of the tax amount. To rectify this mistake, notice u/s.154/155 was issued on 24.12.2020. There

Tata Education Trust, Mumbai vs. Deputy Commissioner of Income Tax Circle-26(1), Mumbai

In the result the appeal of the assessee bearing ITA No

ITA 2610/MUM/2024[2022-23]Status: DisposedITAT Mumbai03 Sept 2024AY 2022-23

Bench: Shri Anikesh Banerjee & Shrigirish Agrawal

For Appellant: Shri Sukhsagar Syal a/w Shri Atul TFor Respondent: ShriP.D. Chougule (Addl. CIT) SRDR

Section 12ASection 143(1)Section 234CSection 244ASection 245Section 250

case and in law, the Ld CTT(A) erred in not adjudicating the Trust's ground with respect to erroneous calculation of interest on refund wis 244A of the Act at a lower level. (ii) On the facts and circumstances of the case and in law, consequent to the increase

Reliance Industries Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 3(4), Mumbai

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

ITA 3057/MUM/2024[1997-98]Status: DisposedITAT Mumbai30 Aug 2024AY 1997-98

Bench: Shri Narender Kumar Choudhry & Shri Girish Agrawalassessment Year: 1997-98

For Appellant: Shri Nimesh Vora, AdvocateFor Respondent: Smt. Mahita Nair, Sr. DR

Section 115JSection 143(3)Section 154Section 244A

compensated due to prejudice caused to the assessee on account of Reliance Industries Ltd., AY 1997-98 inordinate delay in payment of interest of refund which cannot be equated with interest on interest. It further held that in view of insertion of section 244A, assessee shall be granted the interest

JCIT (OSD) Circle -3(4), Mumbai vs. Reliance Industries Limited, Mumbai

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

ITA 159/MUM/2024[1997-98]Status: DisposedITAT Mumbai30 Aug 2024AY 1997-98

Bench: Shri Narender Kumar Choudhry & Shri Girish Agrawalassessment Year: 1997-98

For Appellant: Shri Nimesh Vora, AdvocateFor Respondent: Smt. Mahita Nair, Sr. DR

Section 115JSection 143(3)Section 154Section 244A

Jethiben K.Patel Discretionary Trust, Ahmedabad vs. The DCIT, Circle-2(1)(1), Ahmedabad

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

ITA 272/AHD/2021[1992-93]Status: DisposedITAT Ahmedabad28 Aug 2024AY 1992-93

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

For Appellant: Shri Bandish Soparkar & ParinFor Respondent: Shri Ashok Natha Bhalekar, Sr. DR

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

circumstances. The CIT(A) also stated that the Section 244A(1A) was introduced by the Finance Act, 2016, effective from 01.06.2016, allowing additional interest on refunds arising from orders under Section 250 if the refund is delayed beyond the time limit specified under Section ... assessee emphasizing the need for consistent and fair treatment by the revenue in tax matters, particularly concerning the adjustment and calculation of interest on refunds. 13. In view of the above, we direct the AO to re-compute the interest under section 244A of the Act by first adjusting

State Bank of India, Mumbai vs. Principle Commissioner of Income Tax-2, Mumbai

ITA 1533/MUM/2023[2019-20]Status: DisposedITAT Mumbai28 Aug 2024AY 2019-20

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm

For Appellant: Shri Ketan Ved &For Respondent: Shri Dr. Kishor Dhule, CIT DR

Section 143(3)Section 144BSection 263

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI PAVAN KUMAR GADALE, JM

DCIT, Circle, Patiala vs. M/S Punjab State Power Corporation Ltd., Patiala

In the result, ground no. 1 & 3 of the Revenue’s appeal is allowed and ground no

ITA 737/CHANDI/2022[2017-18]Status: DisposedITAT Chandigarh27 Aug 2024AY 2017-18

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Rajiv Saldi, CAFor Respondent: Smt. Kusum Bansal, CIT, DR

Section 143(2)

High Court in the case of R.B.Jodhamal Kuthiala Vs. CIT [(1972) 83 ITR 464 (P&H)] in which the issue was about the interest on refund of excess profit tax paid. He stated that the Hon'ble High Court in this case held that the tax demanded when refunded assumed ... miscellaneous head of income. It is beyond doubt that in the case of R.B. Jodhamal Kuthiala (supra) it has been held that the interest on refund of tax shall fall under the head of business income and not the residual head. But it is important to note the background

Mape Advisory Group Private Limited, Mumbai vs. DCIT Circle 5.2.1, Mumbai

In the result, appeal of the assessee is allowed

ITA 2191/MUM/2024[2017-2018]Status: DisposedITAT Mumbai22 Aug 2024AY 2017-2018

Section 115JSection 143(3)Section 154Section 244Section 244ASection 244A(1)Section 244A(2)

communication letter issued by CPC and the provisions of IT Act 4 ITA No.2191/Mum/2024 M/s. Mape Advisory Group Pvt. Ltd regarding giving interest on refund u/s 244A of the IT Act. As per the communication of CPC, it is clearly mentioned that the Appellant has not filed Form ... Form No 29B was not filed within due date, the claim of the Appellant is not acceptable. Further, the Appellant has claimed the interest on refund up to the date of credit of refund in his bank account. As per provision u/s 244A of the IT Act, the interest

Atos Information Technology Hk Limited, Mumbai vs. DCIT (International Taxation), 1(1)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 2743/MUM/2024[2006-07]Status: DisposedITAT Mumbai14 Aug 2024AY 2006-07

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Rahul Chaudhary, Hon’Ble

For Appellant: Ms. Chandi Shah, Ms. Tejal Saraf, Shri YogeshFor Respondent: Shri Anil Sant, Addl. CIT, D/R

Section 154Section 244ASection 244A(2)

grievance of the assessee is that, the ld. CIT(A) erred in confirming the order by which the AO has withdrawn the interest on refund u/s 244A of the Act. I.T.A. No. 2743/Mum/2024 2 3. Representatives of both the sides were heard at length, case records carefully perused and relevant ... opinion that a mistake has crept on record while giving effect to the order of the Tribunal, by which erroneously excess interest on refund u/s 244A of the Act was granted to the assessee for the 22 months period from April, 2006 to January, 2008. 8.2. The Finance Bill

Parveen Banu Hebbal, Hyderabad vs. Income Tax Officer, Ward-8(1), Hyderabad

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

ITA 658/HYD/2024[2020-21]Status: DisposedITAT Hyderabad07 Aug 2024AY 2020-21

Bench: Shri Laliet Kumarassessment Year: 2020-21 Parveen Banu Hebbal, Vs. The Income Tax Officer, 8-2-603/13/3/N/1/A, Ward – 8(1), 1St Floor, Singara Colony, Hyderabad. Banjara Hills, Road No.10, Telangana – 500034. Pan : Abxph4274M. (Appellant) (Respondent) Assessee By: Ms. S. Sandhya, Advocate Revenue By: Shri Ashish Kumar Sukhla, Sr.Ar Date Of Hearing: 07.08.2024 Date Of Pronouncement: 07.08.2024

For Appellant: Ms. S. Sandhya, AdvocateFor Respondent: Shri Ashish Kumar Sukhla

Section 143(1)Section 143(2)Section 143(3)Section 68Section 80G

order dt.16.09.2022 determining the total income at Rs.31,83,210/- interalia making addition of Rs.25 lakhs towards disallowance u/s 80GGC, Rs.1,453/- towards interest on refund for A.Y. 2019-20 and Rs.5,60,900/- towards unexplained credits in the bank u/s 68 of the Act. 5. Feeling aggrieved with

Mashreq Communications Limited, Sona Villa Jussa Wala Wadi vs. Income Tax Officer 16(1)(3), Aayakar Bhawan, Mumbai

ITA 4343/MUM/2023[2014 -15]Status: DisposedITAT Mumbai05 Aug 2024

Bench: Shri Prashant Maharishi, Am & Shrisandeep Singh Karhail, Jm

Section 144BSection 147Section 148Section 149Section 154

Page | 1 ITA No.4343/M/2023 AY: 2014-15 Mashreque Communications Ltd Versus Income tax officer - 16 (1) (3), Mumbai IN THE

Indostar Capital Finance Limited, Mumbai vs. Principal Commissioner of Income Tax Central Mumbai -1, Mumbai

In the result, appeal of the assessee ITA No

ITA 2916/MUM/2024[2017-18]Status: DisposedITAT Mumbai01 Aug 2024AY 2017-18

Bench: Shri Br Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Madhu Malati Ghosh (CIT- DR)

Section 143(3)Section 263Section 36(1)(vii)

Subject to sub-paragraph (2), interest shall accrue on the time basis determined by the amount outstanding and the rate applicable. (2) Interest on refund of any tax, duty or cess shall be deemed to be the income of the previous year in which such interest is received/7 This clause

Colgate-Palmolive (India) Limited, Mumbai vs. Principle Commissioner of Income Tax -6, Mumbai

ITA 2645/MUM/2024[2017-18]Status: DisposedITAT Mumbai29 Jul 2024AY 2017-18

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Raj Kumar Chauhan, Hon'Bleι.Τ.Α. No. 2645/Mum/2024

For Appellant: Shri J.D. Mistry & Shri Madhur Agarwal, A/RsFor Respondent: Ms. Madhu Malati Ghosh, CIT, D/R

Section 142(1)Section 143(3)Section 263Section 80GSection 80J

Provision for Bad Debts - AY 15-16 14,811,465 Depreciation as per Income tax (As per TAR) 1,781,318,831 244A Interest on Refund - Credited to P&L and considered separtely 5,257,803 Allowance under 32AC 266,922,835 Allowance under 32AD 57,421,231 Gratuity + Pension ... 35DDA 58,510,841 2,830,731,977 Income from Business or Profession 7,426,802,662 Income from other sources 244A Interest on Refund 5,257,803 Interest Income 276,423,878 Less: Tax free Interest income 22,221,350 254,202,528 259,460,330 Total Income from

M/S. Kluber Lubrication India Private Limited, Bangalore vs. Pr. Commissioner of Income-Tax, Circle-4(1)(1), Bangalore

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

ITA 765/BANG/2023[2019-20]Status: DisposedITAT Bangalore26 Jul 2024AY 2019-20

Bench: Shri George George K & Shri Waseem Ahmedassessment Years: 2019-20

For Appellant: Shri Karanjot Singh, Shri Devashish Jain & ShriFor Respondent: Shri Subramanian S, JCIT (DR)

Section 143(1)Section 154Section 234CSection 244A

That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in not allowing consequential interest on refund due under Section 244A of the Income-tax Act, 1961. 2.1 The assessee vide letter dated 21/03/2024 has also raised the additional ground

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

In the result, appeal of the department is partly allowed for statistical purpose, in the terms aforesaid

ITA 6351/DEL/2018[2004-05]Status: DisposedITAT Delhi26 Jul 2024AY 2004-05

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.6351/िद"ी/2018 (िन.व. 2004-05) Additional Commissioner Of Income Tax, Special Range-7, R.No. 211, C.R Building, New Delhi-110002. ...... अपीलाथ"/Appellant बनाम Vs. M/S. Ocl India Ltd., 7Th Floor, Hansalaya Building, ..... "ितवादी/Respondent 15, Barakhamba Road, New Delhi 110001 Pan: Aaaco-1354 -J

For Appellant: Shri Amaninder Singh Dhindsa, Sr. DRFor Respondent: Ms. Alka Arren, CA

Section 115JSection 154Section 244A

Alka Arren appearing on behalf of the assessee submits that the assessee has not claimed interest on MAT credit. The assessee has claimed interest on refund of advance tax paid. To substantiate his contention the ld. AR referred to the computation of income at page 6 of the paper book ... interest u/s. 244A of the Act allowed by the CIT(A). The contention of the assessee is that the CIT(A) has allowed interest on refund of advance tax paid by the assessee for AY 2004-05, per contra stand of the department is that the CIT(A) has erred

Singhal Builders, Bharatpur vs. ACIT, Circle, Bharatpur

12. In view of above findings, the only argument raised on behalf of the

ITA 285/JPR/2024[2017-18]Status: DisposedITAT Jaipur15 Jul 2024AY 2017-18

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri Hemang Gargieya (Adv.)For Respondent: Shri Anoop Singh (Addl. CIT) (V.C)

Section 244A

amount of refund was to be treated as income from other sources. 4. As regards the abovesaid finding on the point of interest on refund, ld. CIT(A) upheld the same while observing that the interest income was income from other sources. At the same time, ld. CIT(A) held ... part i.e. on the point of interest income on 4 Singhal Builders vs. ACIT refund. As per impugned order, such income by interest on refund is actual income other sources, and not a part of business income of the assessee firm. 8. While challenging the above-said finding

Kohler India Corporation Private Limited, Delhi vs. DCIT, Circle 13(1), New Delhi

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

ITA 435/DEL/2024[2021-22]Status: DisposedITAT Delhi10 Jul 2024AY 2021-22

Bench: Shri Pradip Kumar Kedia & Shri Sudhir Pareeksa No.63/Del/2024 (Arising Out Of Ita No.435/Del/2024 Assessment Year 2021-22

For Respondent: Mr. Waseem Arshad, CIT (DR)

Section 143(1)Section 234BSection 234CSection 250

No.63/Del/ 2024 & ITA No.435/Del/2024 -Refund of Goods and Services Tax (GST) amounting to INR 11,60,58,074/- -Interest on refund of VAT/GST amounting to INR 46,50,000/-” 4.2 The total amount of such refund arising to assessee under the head ‘any tax laws other than income tax laws

Hemant Joshi, Mumbai vs. The Income Tax Officer Ward 16(2)(1), Mumbai, Aayakar Bhavan

In the result, appeal of the assessee is dismissed

ITA 2178/MUM/2024[2018-19]Status: DisposedITAT Mumbai09 Jul 2024AY 2018-19

Bench: The Commissioner (Appeals} & Rs. 500 Before This Honorable Tribunal Because The Appellant Has Been Compelled To Pay Them For Dereliction Of Duty By The Additional/Joint Commissioner Of Income Tax (Appeals} - 4, Delhi & The Deputy Commissioner Of Income Tax, Cpc, Bengaluru. The Appellant Is Entitled To This Refund In Terms Of Sections 240 & 244A, Read With Section 254 Of The Income Tax Act, 1961. 4. Without Prejudice & In The Alternative, If Not Appeal Filing Fees, Then The Appellant May Be Awarded The Cost Of Rs. 1,500 Towards Filing Of This Appeal.

Section 139(5)Section 143(1)Section 154Section 244ASection 249Section 254

relief, 4 Shri Hemant Joshi therefore, Ld. First Appellate Authority held that the grounds are not required to be adjudicated. On issue of interest on refund of Rs. 38,870/- AO was directed to grant/allow interest u/s 244A. The relevant observation reads as under:- “6.Decision: 6.1 Ground ... order passed and not refund of filing fees which is a statutory requirement u/s.249 and Section 253 of the Act. Section 244A provides interest on refunds where refund of any amount becomes due to the assessee in this Act. Here the refund of filing fees is neither a result