https://www.taxtmi.com/caselaws?id=7279 Interest under the proviso to section 66(7) of the Income-tax Act, 1922 was payable where a reference result directly reduced the assessee's tax liability and triggered the refund, without any effective break in causation. The Madras High Court noted that, for a registered firm under the law then applicable, the finding that registration ought to have been granted meant the firm's own tax liability became nil, and the refund necessarily followed. Adjustment of the refunded sum against the partners' individual liabilities did not sever the causal link. Interest was therefore payable on the refunded amount from the date of payment to the date of assessment. en-us Wed, 31 Jan 1968 00:00:00 +0530 Mon, 16 Feb 2009 18:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7279 Interest under the proviso to section 66(7) of the Income-tax Act, 1922 was payable where a reference result directly reduced the assessee's tax liability and triggered the refund, without any effective break in causation. The Madras High Court noted that, for a registered firm under the law then applicable, the finding that registration ought to have been granted meant the firm's own tax liability became nil, and the refund necessarily followed. Adjustment of the refunded sum against the partners' individual liabilities did not sever the causal link. Interest was therefore payable on the refunded amount from the date of payment to the date of assessment. Case-Laws Income Tax Wed, 31 Jan 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7279