Interest on delayed refund

[Ashish Gupta]

We had filed income tax return for A.Y. 2008-09 with refund of Rs. 41,24,500 and received Income tax assessment order and part refund of Rs. 134000 on 5th May 2010 related with our A.Y. 2008-09 and our remaining part refund of Rs. 39,90,500 has adjusted against payment of Dividend distribution tax whereas we had paid DDT through separate challan now we are filing rectification application. Kindly advice whether we should apply for interest on Rs. 39,90,500 which IT Dept. has not paid us and wrongly adjusted, if yes then how?

AI Summary

Taxpayer Seeks Rectification for Incorrect Tax Adjustment; Claims Interest on Delayed Refund Under Sections 154 and 244A. A taxpayer filed an income tax return for the assessment year 2008-09, expecting a refund of Rs. 41,24,500. They received only Rs. 134,000, with the remaining Rs. 39,90,500 wrongly adjusted against a Dividend Distribution Tax (DDT) already paid separately. The taxpayer is advised to file a rectification application under section 154, attaching the DDT payment challan, and to claim interest on the delayed refund under section 244A. Additionally, there is encouragement for the taxpayer to contribute more to the discussion forum.