“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

Security Printing and Minting Corporation of India Ltd, New Delhi vs. ACIT, Circle 22(2), New Delhi

The appeal of the assessee is dismissed

ITA 1824/DEL/2023[2006-07]Status: DisposedITAT Delhi28 Jun 2024AY 2006-07

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

Section 115JSection 143(3)Section 147Section 154Section 234ASection 244A

Acton 02.09.2011 and consequential interest charged therein under section 234A, 234B and 234C of the Act and interest not paying interest on refunds due under section 244A of the Act. The CIT(A) dismissed the appeal with the direction to the AO to verify the claim of the appellant/assessee

Everest Business Advisory India P.Ltd, Gurgaon vs. ACIT, Circle-7(1), New Delhi

ITA 331/DEL/2023[2008-09]Status: DisposedITAT Delhi18 Jun 2024AY 2008-09

Bench: Shri Gs Pannu & Shri Anubhav Sharma

For Appellant: Ms. Vandana Bhandari, CAFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR

Section 143(1)Section 154Section 244ASection 254

submitted that the assessee has not received the refund determined for the year under consideration. In the application, the sought interest on refunds as refunds were against order u/s 143(1) which have been credited to assessee's account in the year 2021 without interest. The assessee also filed ... refund status. Further, assessee has never received any refund cheque from department pertaining to AY 2007-08. The reasons for non payment of interest on refund given by AO are generic and not applicable to facts of the case. Moreover, the Page 3 of 7 ITA No.-330/Del/2023 Everest

Everest Business Advisory India Pvt Ltd, Gurgaon vs. ACIT Circle 7(1), New Delhi

ITA 330/DEL/2023[2007-08]Status: DisposedITAT Delhi18 Jun 2024AY 2007-08

Bench: Shri Gs Pannu & Shri Anubhav Sharma

For Appellant: Ms. Vandana Bhandari, CAFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR

Section 143(1)Section 154Section 244ASection 254

Bundy India Ltd., Baroda vs. The DCIT, Circle-1(1), Baroda

In the result, the appeal preferred by the assessee is allowed in part

ITA 1764/AHD/2013[2007-08]Status: DisposedITAT Ahmedabad10 Jun 2024AY 2007-08

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha

For Appellant: Shri Parin Shah, A.RFor Respondent: Date of Hearing

Section 143(3)Section 92CSection 92C(3)

ground is dismissed. 13. Ground No. 9- Interest 13.1 The ground charging of interest U/s 234B and 234D as well as withdrawal of interest on refund U/s 244A is only consequential in nature and need not be adjudicated. The ground is dismissed. 14. Additional Ground no. 1: Working Capital adjustment

Deputy Commissioner of Income Tax Circle-2(1)(1), Bengaluru vs. Canara Bank, Bengaluru

In the result, revenue’s appeal in ITA No

ITA 716/BANG/2024[2015-16]Status: DisposedITAT Bangalore10 Jun 2024AY 2015-16

Bench: Shri Chandra Poojari & Shri Keshav Dubeyassessment Year: 2015-16

For Appellant: Sri S. Ananthan, A.RFor Respondent: Ms. Neera Malhotra, D.R

Section 14Section 147Section 14ASection 154

relating to taxing of the interest on income tax refunds. The contention of the ld. A.R. is that though assessee has received the interest on refund of tax vide intimation u/s 143(1) of the Act, however, it has been withdrawn by passing the assessment order

Canara Bank, Bengaluru vs. The Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore, Bengaluru

In the result, revenue’s appeal in ITA No

ITA 111/BANG/2024[2015-16]Status: DisposedITAT Bangalore10 Jun 2024AY 2015-16

Bench: Shri Chandra Poojari & Shri Keshav Dubeyassessment Year: 2015-16

For Appellant: Sri S. Ananthan, A.RFor Respondent: Ms. Neera Malhotra, D.R

Section 14Section 147Section 14ASection 154

Piem Hotels Limited, Mumbai vs. The Assistant Commissioner of Income Tax, Circle 3(2)(2), Mumbai

ITA 4407/MUM/2023[2014-15]Status: DisposedITAT Mumbai27 May 2024AY 2014-15

Bench: Shri. Prashant Maharshi & Shri. Raj Kumar Chauhan

Section 115Section 143(3)Section 154Section 244Section 244ASection 250

conceivably be two opinions as pronounced in the above judgments by the Supreme Court. 4. Relevant Section 244A of the Act provides, "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

DCIT Circle -3(4), Mumbai vs. Idbi Bank Ltd, Mumbai

In the result, appeal filed by the learned AO in ITA number

ITA 3573/MUM/2023[2004-05]Status: DisposedITAT Mumbai08 May 2024AY 2004-05

Bench: Shri Prashant Maharishi, Am & Shri Raj Kumar Chauhan, Jm Idbi Bank Ltd. Dcit Circle 3(4) 7Th Floor, R.No. 559, 5Th Floor, Idbi Tower Wtc Complex Vs. Aaykar Bhavan, M.K. Road, Cuffe Parade, Mumbai-400 020 Mm 400005 (Appellant) (Respondent) Pan No. Aabci8842G

For Appellant: Shri C Naresh, ARFor Respondent: Ms Madhu Malati Ghosh, CIT

Section 143Section 244ASection 244A(1)Section 254

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

Srei Infrastructure Finance Limited, Kolkata vs. ACIT, Cir-11(1), Kol, Kolkata

In the result, appeal of the assessee is allowed

ITA 1157/KOL/2023[2017-18]Status: DisposedITAT Kolkata29 Apr 2024AY 2017-18

Bench: Shri Rajpal Yadav & Dr. Manish Boradi.T.A. No.1157/Kol/2023 Assessment Year: 2017-18 Srei Infrastructure Finance Ltd. ………. Appellant (Pan: Aaacs1425L) Vs. Acit, Circle-11(1), Kolkata ……. Respondent Appearances By: Shri S. K. Tulsiyan, Advocate & Sm. Lata Goyal, Aca Appeared For Appellant Shri S. Datta, Cit, Dr Appeared For Respondent . Date Of Hearing : 07.02.2024 Date Of Pronouncing The Order : 29.04.2024 Order Per Manish Borad: This Appeal Filed By The Assessee Pertaining To The Assessment Year (In Short “Ay”) 2017-18 Is Directed Against The Order Passed U/S 250 Of The Income Tax Act, 1961 In Short The “Act”) By Ld. Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [In Short Ld. “Cit(A)”] Dated 05.09.2023 Arising Out Of The Assessment Order U/S. 154 R,W,S, 143(3) Of The Act By Acit, Circle-11(1), Kolkata Dated 12.07.2022. 2. Grounds Of Appeal Raised By The Assessee Are Reproduced As Under: “1. That On The Facts & In The Circumstances Of The Case, The Learned Commissioner Of Income Tax (Appeal), [Here- In- After Referred To As Ld. Cit(A)] Was Not Justified & Grossly Erred In Not Granting The Interest U/S. 244A Of The Income Tax Act, 1961 ('The Act').

Section 115JSection 139(1)Section 143(2)Section 154Section 244ASection 244A(2)Section 250

many months the assessee is entitled to the interest u/s. 244A. For better understanding, we reproduce section 244A below: “ [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, be entitled to receive

Saab Technologies B.V.(Formerly Known S, Kolkata vs. D.C.I.T., International Taxation, Circle-2(1), Kolkata

In the result, ITA No. 153/KOL/2022 is allowed

ITA 153/KOL/2022[2018-2019]Status: DisposedITAT Kolkata18 Apr 2024AY 2018-2019

Bench: Sri Anikesh Banerjee & Sri Girish Agrawal

Section 143(3)Section 144C

further, argued related to the normal tax in ground no. 8 and placed that the Revenue has taxed 10% on the interest on refund. Ld. A/R submitted his argument as follows:- “3.6.1. During the subject AY, the appellant received interest income on income tax refunds from the Income Tax Department

Shell Information Technology International Bv, Mumbai vs. DCIT (It) 4 (2) (1), Mumbai

ITA 3339/MUM/2023[2020-21]Status: DisposedITAT Mumbai04 Apr 2024AY 2020-21

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Ajay Kumar Sharma

Section 143(3)Section 144C(13)Section 144C(5)Section 153Section 2(24)Section 234ASection 234BSection 270A

rate of 10% in terms of Article 12 of the DTAA. Further, while computing the tax liability the Assessing Officer computed tax on interest on refund (offered to tax by the Appellant in the return of income) by adopting rate of 40% [plus applicable surcharge and cess] as against

The Kerala Minerals and Metals Ltd., Kollam vs. The Dict, Kollam

In the result, the assessee’s appeal is dismissed

ITA 96/COCH/2022[2005-06]Status: DisposedITAT Cochin28 Mar 2024AY 2005-06

Bench: Shri Sanjay Arora & Shri Manomohan Dasthe Kerala Minerals & Metals Ltd. Dy. Commissioner Of Income Tax Sankaramangalam Circle - 1, Kollam Chavara, Kollam 691001 Vs. [Pan:Aaact8118R] (Appellant) (Respondent)

For Appellant: Shri Rajeev R., CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R

Section 154Section 244A

amount, if any, of the tax paid in excess of the tax chargeable on the total income returned by the assessee. 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 ... April, 1989, and subsequent assessment years. 5.2 It is apparent that the Legislature did not intend the issue of interest on refund to be subject to litigation, i.e., to the extent possible, defining all possible circumstances under which a refund may arise, also providing a residual clause beginning with

Clifford Chance Pte Ltd, Singapore vs. Assistant Commissioner of Income Tax, International Taxation, Circle Int. Tax

In the result, the appeals of the assessee for both the AYs 2020-21

ITA 3377/DEL/2023[2021-22]Status: DisposedITAT Delhi14 Mar 2024AY 2021-22

Bench: Dr. Brr Kumar & Ms. Astha Chandrasa No. 437/Del/2023

For Appellant: S/Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT-DR

Section 143(3)Section 144CSection 144C(13)Section 153Section 9

belongs to the assessee. 24. The assessee has claimed that it has not received any payment from ICICI Bank and any refund and interest on refund from the Income Tax Department on which TDS has been deducted which is reflected in Form 26AS. In this view of the matter

Clifford Chance Pte. Ltd., Singapore vs. Assistant Commissioner of Income Tax, Civic Centre

In the result, the appeals of the assessee for both the AYs 2020-21

ITA 2681/DEL/2023[2020-21]Status: DisposedITAT Delhi14 Mar 2024AY 2020-21

Bench: Dr. Brr Kumar & Ms. Astha Chandrasa No. 437/Del/2023

For Appellant: S/Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT-DR

Section 143(3)Section 144CSection 144C(13)Section 153Section 9

Aachman Vanijya Pvt. Ltd, Mumbai vs. DCIT, Central Circle-8(4), Mumbai

ITA 1509/MUM/2021[2016-17]Status: DisposedITAT Mumbai27 Feb 2024AY 2016-17

For Appellant: Ms. Ridhisha JainFor Respondent: Shri Ajay Chandra

Section 132Section 143(3)Section 14ASection 153ASection 244ASection 245

above. 7. Ground No. 1 Ground No. 1 raised by the Appellant pertains to addition of INR 4,37,130/- pertaining to interest on refund. On perusal of record, we find that the Assessing Officer had made addition of INR 4,37,130/- holding the same to be interest received ... income tax refund was adjusted against the outstanding demand, no notice/initiation under Section 245 of the Act was received by the Appellant. Interest on refund was also not credited to the bank account of the Appellant. Even Form 26AS, at the time of filing return of income, did not reflect

ACIT-2(2)(1), Mumbai vs. State Bank of India (State Bank of Bikaner & Jaipur (Now Merged With State Bank of India), Mumbai

In the result solitary ground of appeal is dismissed

ITA 1194/MUM/2023[2015-16]Status: DisposedITAT Mumbai26 Feb 2024AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm State Bank Of India (State Bank Of Bikaner & Jaipur) (Now Merged With Acit 2(2)(1) Room No.545, 5Th Floor, State Bank Of India) 3Rd Floor, Frt Department, Aaykar Bhavan, M.K. Road, Vs. Mumbai-400 020 State Bank Bhavan, Nariman Point, Mumbai-400 021 (Appellant) (Respondent) Pan No. Aadcs4750R Assessee By : Shri Ketan Ved, Ar Revenue By : Shri Dr. Kishor Dhule, Cit Dr Date Of Hearing: 17.01.2024 Date Of Pronouncement : 26.02.2024

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

Section 143Section 244ASection 254

raised only ground that the learned CIT – A has erred in directing the AO to adjust the refund granted first towards interest amount refundable and thereafter consider the balance amount of tax amount refundable which will lead to excess grant of interest contrary to the practice followed by the Department ... Further, coordinate bench decision has also been referred to. 07. Section 244A of the Income Tax Act pertains to the payment of interest on refunds. It states that if the taxpayer is entitled to a refund, they shall be paid an additional interest amount as determined

Teksystems Global Services Private Limited, Hyderabad vs. DCIT, Circle-2(1), Hyderabad

In the result, appeal of the assessee is allowed as directed above

ITA 290/HYD/2023[2017-18]Status: DisposedITAT Hyderabad09 Feb 2024AY 2017-18

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Ms. Amulya K. ARFor Respondent: Shri Shakeer Ahamed, DR

Section 32

above directions. Page 8 of 10 18. In respect of ground No. 3, we direct the learned Assessing Officer to verify and grant interest on refund in terms of section 244A of the Act. 19. In the result, appeal of the assessee is allowed as directed above. Order pronounced

M/S. Rdc Ventures, Mumbai vs. PCIT-27, Mumbai

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

ITA 1915/MUM/2023[2018-19]Status: DisposedITAT Mumbai09 Feb 2024AY 2018-19

Bench: Shri Vikas Awasthy & Shri Amarjit Singhm/S Rdc Ventures Vs. Principal Commissioner Office No.-110 Of Income Tax-27 Ridhhisidhhi Premises Room No. 401, 4 Th Floor, Society, Near Sahakar Tower No. 6, Vashi Talkies Tilak Nagar, Railway Station, Chembur (West) Mumbai- Commercial Complex, 400089 Vashi, Navi Mumbai -400703 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aakfr0914Q Appellant .. Respondent Appellant By : Dhran Gandhi Respondent By : Sanyogita Nagpal Date Of Hearing 29.11.2023 Date Of Pronouncement 09.02.2024

For Appellant: Dhran GandhiFor Respondent: Sanyogita Nagpal

Section 143(2)Section 143(3)Section 263

accounted as current Liabilities under the head Advance from Customers. P a g e | 8 M/s RDC Ventures Vs. Pr.CIT-27 a. Interest on refund of any tax, duty or cess and dividend has been recognized on the receipt basis b. The Operating Revenue in respect of sale of goods ... when the related service is completed or right to receive the same is established. d. Revenue in respect of Investment/other income except interest on refund and dividend is recognized as and when the right to receive the same is established.” 11. It is clearly evident from the submission made before

Mgg Infra Projects Private Limited, Ajmer vs. Income Tax Officer, Delhi

In the result, the appeal filed by the assessee is allowed in the terms

ITA 728/JPR/2023[2017-18]Status: DisposedITAT Jaipur08 Feb 2024AY 2017-18

Bench: Sh. Sandep Gosain & Dr. M. L. Meena

For Appellant: NoneFor Respondent: Sh. Monisha Chaudhary, Addl. CIT

Section 244ASection 250Section 270A

Higher Judicial Forums, we decline to condone the delay in filing the appeal. However, in the interest of justice, the limited issue of interest on refund amounting to Rs.3,81,284/- u/s 244A is restored to AO to be decided as per law. 11. In the result, the appeal filed

DCIT Central Circle-26, New Delhi vs. Shivji Garments Pvt Ltd, New Delhi

In the result, the appeals of the Revenue are dismissed and Cross objections of the assesee are dismissed as not pressed

ITA 9642/DEL/2019[2016-17]Status: DisposedITAT Delhi06 Feb 2024AY 2016-17

Bench: Shri Challa Nagendra Prasaddr. B. R. R. Kumar

For Appellant: Ms. Shilpi Jain, AdvFor Respondent: Ms. Amisha Gupt, CIT-DR

Section 132Section 143(3)Section 153C

IDBI Bank Date of Receipt/ Credits Amount Name of the Date of Amount Receipt from partv payment (Rs.) (Rs.) 09-04-2014 Interest On Refund 3500.00 BRR securities 11.9.2014 3500 pvt ltd 19-05-2014 HJ BOOK AGENCY 4900000.00 JINDAL SAXENA 19.5.2014 2800000 FINANCIAL SERVICES