https://www.taxtmi.com/caselaws?id=8804 Under the proviso to section 66(7) of the Indian Income-tax Act, 1922, interest on a tax refund is governed by a special statutory scheme distinct from the general refund provisions. The Commissioner's discretion extends only to fixing the rate of interest, not the date from which it runs, and a wholly discretionary commencement date was rejected as arbitrary. Interest is therefore compensatory for amounts retained under the original Tribunal order later reversed on reference, and the consequential order under section 66(5) does not create a fresh refund right. Interest runs from the original Tribunal order, or from the date of payment if tax was paid after that order. en-us Wed, 27 Sep 1972 00:00:00 +0530 Thu, 04 Jun 2009 17:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8804 Under the proviso to section 66(7) of the Indian Income-tax Act, 1922, interest on a tax refund is governed by a special statutory scheme distinct from the general refund provisions. The Commissioner's discretion extends only to fixing the rate of interest, not the date from which it runs, and a wholly discretionary commencement date was rejected as arbitrary. Interest is therefore compensatory for amounts retained under the original Tribunal order later reversed on reference, and the consequential order under section 66(5) does not create a fresh refund right. Interest runs from the original Tribunal order, or from the date of payment if tax was paid after that order. Case-Laws Income Tax Wed, 27 Sep 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8804