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HC held that under the Direct Tax Vivad Se Vishwas Act, 2020, while the petitioner was not initially entitled to interest u/s 244A of Income Tax Act, 1961, the designated authority's approval of the scheme and subsequent refund order mandates interest payment on the withheld refund amount. The court directed respondents to pay Rs. 4,39,010/- within 12 weeks, with 12% interest applicable if payment is delayed beyond the prescribed timeline. The petition was substantially allowed, compelling the respondent to compensate the petitioner for delayed refund.
HC held that under the Direct Tax Vivad Se Vishwas Act, 2020, while the petitioner was not initially entitled to interest u/s 244A of Income Tax Act, 1961, the designated authority's approval of the scheme and subsequent refund order mandates interest payment on the withheld refund amount. The court directed respondents to pay Rs. 4,39,010/- within 12 weeks, with 12% interest applicable if payment is delayed beyond the prescribed timeline. The petition was substantially allowed, compelling the respondent to compensate the petitioner for delayed refund.
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