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of <h1>Appeal allowed against 15% interest award; refund Rs.36,61,013 excess over 6% to Department within four weeks</h1> The SC allowed the appeal against the HC's award of interest at 15% p.a., noting an earlier interim order stayed the HC's direction insofar as interest ... Unjust adjustment of excess refunds - Award of interest at 15% per annum from the date of adjustment of the said amount till the date of payment of the refund - as submitted that the statutorily fixed rate of interest u/s 244-A is only 6% per annum, therefore, the High Court [2021 (3) TMI 1014 - TELANGANA HIGH COURT] could not have ordered for refund @ 15% per annum HELD THAT:- We find that this Court by an interim order [2021 (8) TMI 1433 - SC ORDER] had stayed the direction of the High Court insofar as it pertains to the award of interest in excess of 6% per annum. However, by then there had been compliance of the order of the High Court. We hence allow this appeal by directing the respondent to refund the amount of interest in excess of 6% per annum to the appellant(s)/Department being Rs.36,61,013/- within a period of four weeks from today. Appeal is allowed and disposed of in the aforesaid terms. In the Supreme Court case, presided over by Hon'ble Justice B. V. Nagarathna and Hon'ble Justice Satish Chandra Sharma, the appellant challenged the High Court's order awarding interest at 15% per annum on tax refunds, arguing that under Section 244-A of the Income Tax Act, 1961, the statutory interest rate is 6% per annum. The appellant sought modification of the High Court's order to align with the statutory rate.The respondent's counsel contended that the department had already complied with the High Court's directive. However, the Supreme Court had previously issued an interim order staying the High Court's directive regarding interest exceeding 6%. The Supreme Court ultimately allowed the appeal, directing the respondent to refund the excess interest amounting to Rs.36,61,013/- to the appellant within four weeks. The appeal was thus allowed and disposed of, with any pending applications also disposed of accordingly.
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