No statutory right to interest on delayed refund of statutory interest under the Income-tax Act, Tribunal holds.

The Tribunal held that, under the Income-tax Act, there is no statutory right to receive interest on delayed payment of statutory interest or compensation for delay in refunding interest arising from seized money. It distinguished the High Court ruling relied on by the assessee, noting that compensation for inordinate delay was granted there under the court's inherent power and not under any express provision of the Act. In the absence of a specific statutory basis, the additional claim for interest or compensation on delayed refund of interest was not maintainable.

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Issues: Whether the assessee was entitled to interest or compensation for delayed payment of interest/refund on the amount refunded from seized money under the Income-tax Act.

Analysis: The Tribunal noted that the assessee had received interest on the refunded seized amount, but claimed an additional amount because the refund of that interest was delayed. It held that the decision of the High Court relied upon by the assessee did not lay down a right to interest on interest under the Income-tax Act. The Tribunal distinguished the grant of compensation for inordinate delay as an exercise of inherent power by the High Court and not as relief available under any specific provision of the Income-tax Act. In the absence of a statutory provision permitting interest on delayed payment of statutory interest or compensation for such delay, the claim could not be allowed.

Conclusion: The assessee was not entitled to interest or compensation for delayed refund of statutory interest under the Act.

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