2025 (5) TMI 535 - SCH - Income Tax

SC upholds interest on refund under Section 244A despite delay, rejects petitions citing procedure and merit issues

The SC dismissed the Special Leave Petitions due to unexplained delay of over 370 days and lack of merit. The HC had allowed the petitions directing the ... Interest on the claim of the refund - petitioners could not file the return of income claiming refund in time and such return was filed after condoning delay by the respondent under section 119(2)(b) - interest on the compensation amount is paid for acquisition of the agricultural land of the petitioners - TDS deducted under wrong section as correct section for deduction of tax at source is section 194A and not section 194C - As decide by HC [2023 (12) TMI 1165 - GUJARAT HIGH COURT] the petitions succeed and are accordingly allowed. The respondent is directed to grant interest on the refund claim from the date of deposit of the TDS till the date of refund as per the provisions of section 244A of the Act, 1961. HELD THAT:- There is a gross delay of 371, 390 and 374 days respectively in filing the Special Leave Petitions which has not been satisfactorily explained by the petitioners. Even otherwise, we see no good reason to interfere with the impugned orders passed by the High Court. Special Leave Petitions are, accordingly, dismissed on the ground of delay as well as merits. The Supreme Court, through Hon'ble Justices J.B. Pardiwala and R. Mahadevan, dismissed the Special Leave Petitions due to a 'gross delay of 371, 390 and 374 days respectively' in filing, which was 'not satisfactorily explained by the petitioners.' Additionally, the Court found 'no good reason to interfere with the impugned orders passed by the High Court.' Consequently, the petitions were dismissed both 'on the ground of delay as well as merits,' and all pending applications were disposed of.