Section 244A of the Income Tax Act

Income-tax Act, 2025: s.437

Section 244A of the Income-tax Act, 1961 corresponds to section 437 (Interest on refunds) of the Income-tax Act, 2025.

Read section 437 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 244A is ITO v. Daga Capital Management (P) Ltd. (117 ITD 169), cited in 151 of the 1,186 judgments on BharatTax that turn on this section.

Leading authorities on Section 244A

ITO v. Daga Capital Management (P) Ltd.
117 ITD 169 · 2009 · ITAT
151
citing judgments
Otis Elevator Co. (India) Ltd. v. CIT
195 ITR 682 · 1992 · High Court
131
citing judgments

Club membership fees, including both entrance fees and annual subscriptions, are not considered capital expenditure if the membership's continuance depends on regular payments, and therefore are allowable as revenue expenditure under Section 37(1).

CIT v. Karnataka Power Corporation
247 ITR 268 · 2001 · Supreme Court
124
citing judgments

Income earned during the project construction stage, which has a direct nexus or is inextricably linked to the project's setting up, constitutes a capital receipt not liable to tax and reduces the project cost.

Wipro Ltd. v. DCIT
382 ITR 179 · 2016 · High Court
122
citing judgments

Foreign Tax Credit (FTC) is allowable even if no tax is paid in India on the corresponding income due to deductions under sections 10A or 10AA, or losses in other units. The scope of income eligible for deduction under Section 10AA includes interest on deposits and realized gains on forward contracts.

DDIT v. Savvis Communication Corporation
69 Taxmann.com 106 · 2016 · ITAT
107
citing judgments

Payments for web hosting services, including data back-up, maintenance, security, and uninterrupted services, are not taxable as royalty under Section 9(1)(vi) of the Income Tax Act, as they do not constitute 'consideration for use of, or right to use, scientific equipment'.

Godrej & Boyce Mfg. Co. Ltd. v. DCIT, Range10(2), Mumbai
234 CTR 1 · 2010 · High Court
97
citing judgments

Expenditure incurred by an assessee in relation to income not forming part of the total income is not deductible under Section 14A(1). The disallowance must be restricted to direct and indirect expenses having an approximate connection with the earning of such exempt income, and Rule 8D applies from Assessment Year 2008-09.

Sandvik Asia Ltd. v. CIT
280 ITR 643 · 2006 · Supreme Court
96
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
91
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. Dinesh Kumar Goel
331 ITR 10 · 2011 · High Court
87
citing judgments

Income is recognized when it is absolutely ascertained, determined, and specified, conferring an exclusive right of receipt upon the assessee, irrespective of the accounting period.

Sunil Siddharthbhai v. CIT
156 ITR 509 · 1985 · Supreme Court
82
citing judgments

A partner's contribution of a personal asset to a partnership firm does not amount to a "transfer" for capital gains purposes under the Income-tax Act, as the consideration (the partner's interest in the firm) is indeterminate, and the computational machinery for capital gains fails.

Judgments on Section 244A

M/S. Nike India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

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

ITA 203/BANG/2021[2016-17]Status: DisposedITAT Bangalore24 Aug 2022AY 2016-17

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am It(Tp)A No.203/Bang/2021 : Asst.Year 2016-2017 M/S.Nike India Private Limited The Deputy Commissioner Of Ground & First Floor, Olympia Income-Tax, Circle 3(1)(1) V. Bangalore. Building, No.66/1, Begmane Tech Park, C.V.Raman Nagar Bangalore – 560 093. Pan : Aabcn9612K. (Appellant) (Respondent) Appellant By : Sri.K.R.Vasudevan, Advocate Respondent By : Sri.Bijoy Kumar Panda, Cit-Dr Date Of Pronouncement : 24.08.2022 Date Of Hearing : 23.08.2022 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 27.03.2021 Passed U/S 143(3) R.W.S. 144C(13) Of The I.T.Act. The Relevant Assessment Year Is 2016-2017. 2. The Brief Facts Of The Case Are As Follows: The Assessee Is A Wholesale Distributor Of Nike Brand Products In India. For The Assessment Year 2016-2017, The Return Of Income Was Filed On 30.11.2016 Declaring Total Loss Of Rs.164,42,63,191. The Assessment Was Selected For Scrutiny & Notice U/S 143(2) Of The I.T.Act Was Served. During The Course Of Assessment Proceedings, The Matter Was Referred To The Transfer Pricing Officer (Tpo) To Determine The 2 It(Tp)A No.203/Bang/2021. M/S.Nike India Private Limited. Arm’S Length Price (Alp) Of The International Transaction Undertaken By The Assessee With Its Associate Enterprises (Aes). The Tpo Vide Order Dated 31.10.2019, Passed U/S 92Ca Of The I.T.Act, Proposed The Tp Adjustment Totaling To Rs.63,27,41,494 Under Various Segments. The Details Of The Same Are As Follows:- Segment Adjustment (Rs.) Issue Of Sourcing Commission 30,57,35,722 Reimbursement Of Expenses 17,77,95,683 Third Party Royalty 2,00,08,967 Amp Expenses 12,92,01,122 Total 63,27,41,494

For Appellant: Sri.K.R.Vasudevan, AdvocateFor Respondent: Sri.Bijoy Kumar Panda, CIT-DR
Section 143(2)Section 143(3)Section 92C

Orient Overseas Container Line Limited, Mumbai vs. Office of the Deputy Commissioner of Income Tax (International Tax)-3(2)(2), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 826/MUM/2022[2018-19]Status: DisposedITAT Mumbai23 Aug 2022AY 2018-19

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleorient Overseas Container Line Limited V. Dcit(It)-3(2)(2) C/O. Oocl (India) Private Limited 16Th Floor Icc Chambers, 5Th Floor Air India Building Saki Vihar Road, Opp. Santogen Silk Mills Nariman Point Powai, Mumbai - 400072 Mumbai – 400 021 Pan: Aaaco5679E (Appellant) (Respondent) Assessee By : Shri Nikhil Tiwari Department By : Ms. Bharati Singh

For Appellant: Shri Nikhil TiwariFor Respondent: Ms. Bharati Singh
Section 143(2)Section 143(3)Section 144C(5)Section 154Section 234CSection 44B

Damco International Bv, Mumbai vs. Deputy Commissioner of Income Tax (It)-2(1)(2), Mumbai

In the result, appeal by the assessee is partly allowed

ITA 7447/MUM/2017[2013-14]Status: DisposedITAT Mumbai22 Aug 2022AY 2013-14
For Appellant: Shri Poras Kaka, Sr.Advocate with Shri Manish KanthFor Respondent: S/ Shri B.K.Bagchi & Milind Chavan
Section 143(3)Section 234ASection 244ASection 271(1)(c)Section 92C

DCIT Circle 2(1), Trichy vs. The Lakshmi Vilas Bank Ltd., Karur

ITA 899/CHNY/2019[2012-13]Status: DisposedITAT Chennai19 Aug 2022AY 2012-13

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri G. Sittaraman (CA) – Ld. ARFor Respondent: Shri Guru Bashyam (CIT-DR) – Ld. DR
Section 143(3)Section 244ASection 30Section 36Section 36(1)Section 36(1)(viia)Section 36(1)(viii)Section 37(1)

The Lakshmi Vilas Bank Limited, Karur vs. ACIT Circle 2(1), Trichy

ITA 671/CHNY/2019[2012-13]Status: DisposedITAT Chennai19 Aug 2022AY 2012-13

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri G. Sittaraman (CA) – Ld. ARFor Respondent: Shri Guru Bashyam (CIT-DR) – Ld. DR
Section 143(3)Section 244ASection 30Section 36Section 36(1)Section 36(1)(viia)Section 36(1)(viii)Section 37(1)

M/S. Otis Elevator Company (India) Ltd, Mumbai vs. Dy.Comm of Income Tax, Circle 13(1) (1), Mumbai

In the result, the appeal is allowed

ITA 1865/MUM/2022[2010-11]Status: DisposedITAT Mumbai18 Aug 2022AY 2010-11
Section 139(1)Section 143(3)Section 154Section 244ASection 244A(2)

Shantinath Nagari Sahakari Pat Sanstha Maryadit, Kolhapur vs. Assistant Director of Income-Tax, CPC, Bengaluru

In the result, the appeal of the assessee is allowed

ITA 534/PUN/2021[2019-20]Status: DisposedITAT Pune17 Aug 2022AY 2019-20

Bench: Us Is The Denial Of Deduction U/S 80P(2)(A)(I) Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) Even Though The Assessee Qualifies For Deduction Being A Registered Co-Operative Society Vis-À-Vis In Providing Credit Facilities To Its Members. There Are Several Decisions Of The Co-Ordinate Bench Pune, Where Deduction U/S 80P(2)(A)(I) Has Been Allowed To A Registered Co-Operative Society Engaged In Providing Credit Facilities To Its Members. In Ita No. 826/Pun/2019 For A.Y. 2014-15, Order Dated 23-09-2020, It Was Held As Follows:

For Appellant: Shri Pramod ShingteFor Respondent: Shri Arvind Desai
Section 80PSection 80P(1)Section 80P(2)Section 80P(2)(a)Section 80P(2)(d)

H.U.F. of His Late Highness Sir J.M. Scindia, Mumbai vs. ACIT Range -18(2)(4), Mumbai

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

ITA 5536/MUM/2019[1997-98]Status: DisposedITAT Mumbai11 Aug 2022AY 1997-98

Bench: Us :-

Section 154Section 244A

Manglam Arts, Jaipur vs. DCIT, Circle-4, Jaipur

In the result, appeal of the assessee is allowed

ITA 207/JPR/2022[2018-2019]Status: DisposedITAT Jaipur10 Aug 2022AY 2018-2019
For Appellant: Shri P. C. Parwal (CA)For Respondent: Shri A.S. Nehra (Addl. CIT)
Section 142(1)Section 143(1)Section 143(2)Section 244ASection 250

M/S. Onmobile Global Limited, Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 5(1)(2), Bengaluru

In the result, both these appeals are partly allowed

ITA 2560/BANG/2019[2015-16]Status: DisposedITAT Bangalore10 Aug 2022AY 2015-16

Bench: Shri George George K. & Ms. Padmavathy S

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 14ASection 234BSection 244ASection 32

M/S Onmobile Global Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-5(1)(2), Bangalore

In the result, both these appeals are partly allowed

ITA 139/BANG/2019[2014-15]Status: DisposedITAT Bangalore10 Aug 2022AY 2014-15

Bench: Shri George George K. & Ms. Padmavathy S

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 14ASection 234BSection 244ASection 32

North American Coal Corporation India P Ltd, Pune vs. Asst Commissioner of Income Tax, Circle 2, Pune

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

ITA 688/PUN/2021[2014-15]Status: DisposedITAT Pune08 Aug 2022AY 2014-15
For Appellant: Shri Siddarth ChauguleFor Respondent: Shri Arvind Desai
Section 156Section 195(2)Section 244ASection 250Section 253

M/S Allen Career Institute, Jaipur vs. Income Tax Officer, Ward-2-1, Kota

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

ITA 617/JPR/2018[2013-14]Status: DisposedITAT Jaipur04 Aug 2022AY 2013-14
For Appellant: Shri Mahendra Gargieya, Advocate &For Respondent: Shri A.S. Nehra, Addl. CIT
Section 143(3)Section 234ASection 244ASection 37(1)

Allen Career Institute, Kota vs. JCIT, Jaipur

In the result, the Grounds No

ITA 54/JPR/2017[2012-12]Status: DisposedITAT Jaipur04 Aug 2022AY 2012-12
For Appellant: Shri Mahendra Gargieya, Advocate &For Respondent: Shri A.S. Nehra, Addl. CIT
Section 143(3)Section 234ASection 244ASection 36Section 36(1)(iii)Section 37(1)

Allen Career Institute, Jaipur vs. JCIT, Kota

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

ITA 620/JPR/2016[2011-12]Status: DisposedITAT Jaipur04 Aug 2022AY 2011-12
For Appellant: Shri Mahendra Gargieya, Advocate &For Respondent: Shri A.S. Nehra, Addl. CIT
Section 143(3)Section 36Section 36(1)(iii)Section 37(1)

Allen Career Institute, Jaipur vs. JCIT, Kota

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

ITA 246/JPR/2015[2010-11]Status: DisposedITAT Jaipur04 Aug 2022AY 2010-11
For Appellant: Shri Mahendra Gargieya, Advocate &For Respondent: Shri A.S. Nehra, Addl. CIT
Section 143(3)Section 234ASection 244ASection 36(1)(iii)

Principal Commissioner of Income Tax-7 vs. Punjab & Sind Bank

ITA/1447/2018HC Delhi04 Aug 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

Section 220Section 220(2)Section 234DSection 234D(2)Section 244ASection 244A(1)(b)

Prudent-Agri Commodities India Private Limited, New Delhi vs. Addi. CIT Spl. Range-7, New Delhi

In the result, the appeal filed by the Assessee stands allowed

ITA 7524/DEL/2019[2015-16]Status: DisposedITAT Delhi29 Jul 2022AY 2015-16

Bench: Shri Anil Chaturvedi & Shri N.K. Choudhryassessment Year: 2015-16

For Appellant: Shri Sameer Mahajan, Ld. CAFor Respondent: ShriAkhilesh Gupta, Ld. Sr. DR
Section 140ASection 143(3)Section 14ASection 154Section 244Section 244ASection 250

Gmr Airports Limited, Bengaluru vs. Assistant Director of Income Tax, CPC, Bangalore

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

ITA 493/BANG/2022[2019-20]Status: DisposedITAT Bangalore26 Jul 2022AY 2019-20

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sassessment Year : 2019-20 M/S. Gmr Airports Ltd., The Assistant Director Of Vs. No.25/1, Skip House, Museum Road, Income Tax, Bengaluru – 560 025. Cpc, Pan : Aaacm 7791H Bangalore. Appellant Respondent

For Appellant: Shri. Sunil Jain, CAFor Respondent: Smt. Priyadarshini Baseganni, Addl.CIT(DR)(ITAT), Bengaluru
Section 143(1)Section 154Section 244A

Gmr Kamalanga Energy Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle 2(2), Bangalore

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

ITA 412/BANG/2022[2018-19]Status: DisposedITAT Bangalore26 Jul 2022AY 2018-19

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sassessment Year : 2018-19 M/S. Gmr Kamalanga Energy Ltd., Dcit, Vs. No.25/1, Skip House, Museum Road, Central Circle – 2(2), Bengaluru – 560 025. Bengaluru. Pan : Aadcg 0436 E Appellant Respondent

For Appellant: Shri. Sunil Jain, CAFor Respondent: Smt. Susan Dolores George, CIT(OSD)(ITAT), Bengaluru
Section 143(1)Section 237Section 244A