https://www.taxtmi.com/caselaws?id=460151 Interest on income tax refunds under Section 244A is compensatory and reflects the time value of money; it cannot stop merely because a refund order has been passed if the amount remains unpaid. The expression "refund is granted" must be read to cover actual release of the refund, otherwise the Revenue could withhold payment while denying further interest. Interest is therefore payable up to the date of actual disbursement of the refund amount, and the assessee is entitled to recalculation of interest accordingly. en-us Mon, 30 Sep 2024 00:00:00 +0530 Mon, 13 Jan 2025 18:56:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460151 Interest on income tax refunds under Section 244A is compensatory and reflects the time value of money; it cannot stop merely because a refund order has been passed if the amount remains unpaid. The expression "refund is granted" must be read to cover actual release of the refund, otherwise the Revenue could withhold payment while denying further interest. Interest is therefore payable up to the date of actual disbursement of the refund amount, and the assessee is entitled to recalculation of interest accordingly. Case-Laws Income Tax Mon, 30 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460151