Court grants interest under Income-tax Act for excess tax refund

The High Court of Madras ruled in favor of the assessee, stating they were entitled to interest under section 244(1A) of the Income-tax Act, 1961, on the refund due to excess payment of tax under section 140A(1) of the Act, following precedent set in a case involving Modi Industries Ltd.

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The High Court of Madras ruled in favor of the assessee, stating that they were entitled to interest under section 244(1A) of the Income-tax Act, 1961, on the refund due to excess payment of tax under section 140A(1) of the Act. The judgment referenced a similar case involving Modi Industries Ltd., where it was held that interest must be paid if the refund is delayed beyond a specified period.

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