https://www.taxtmi.com/caselaws?id=449840 The MP HC dismissed a petition by a suspended employee seeking higher interest on tax refund. The petitioner, suspended from 1996-2007, received subsistence allowance and claimed relief under Section 89(1) of IT Act. The court held that Section 89 relief is a rebate/adjustment against tax liability, not a refundable amount. The IT Department correctly calculated the refund amount and paid interest at statutory rate of 0.5% per month under Section 244A(1). The court rejected the petitioner's claim for 18% interest, noting no legal provision supports such higher rate and the Department had already paid more interest than calculated by the petitioner's chartered accountant. en-us Fri, 09 Feb 2024 00:00:00 +0530 Thu, 29 Aug 2024 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449840 The MP HC dismissed a petition by a suspended employee seeking higher interest on tax refund. The petitioner, suspended from 1996-2007, received subsistence allowance and claimed relief under Section 89(1) of IT Act. The court held that Section 89 relief is a rebate/adjustment against tax liability, not a refundable amount. The IT Department correctly calculated the refund amount and paid interest at statutory rate of 0.5% per month under Section 244A(1). The court rejected the petitioner's claim for 18% interest, noting no legal provision supports such higher rate and the Department had already paid more interest than calculated by the petitioner's chartered accountant. Case-Laws Income Tax Fri, 09 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449840