https://www.taxtmi.com/caselaws?id=245157 SC held that revenue is legally responsible for paying interest on refunds of excess tax deposited under Section 195(2). Interest on refunds constitutes compensation for unauthorized retention of money by the department. When collection is illegal, revenue has corresponding obligation to refund with interest. The court extended this benefit to resident/deductors who deducted tax at source, not just assessees. Government cannot avoid reimbursing lawful monies with accrued interest despite absence of express statutory provision. Interest is payable from date of payment of tax under clause (b) of Section 244A. Decided against revenue. en-us Wed, 26 Feb 2014 00:00:00 +0530 Wed, 14 May 2025 17:20:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=245157 SC held that revenue is legally responsible for paying interest on refunds of excess tax deposited under Section 195(2). Interest on refunds constitutes compensation for unauthorized retention of money by the department. When collection is illegal, revenue has corresponding obligation to refund with interest. The court extended this benefit to resident/deductors who deducted tax at source, not just assessees. Government cannot avoid reimbursing lawful monies with accrued interest despite absence of express statutory provision. Interest is payable from date of payment of tax under clause (b) of Section 244A. Decided against revenue. Case-Laws Income Tax Wed, 26 Feb 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=245157