TaxTMI 
TaxTMI 
2026 (8) TMI 1779
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.... thereof. (iii) to direct grant of additional interest as per provisions of section 244A(1A) of the Act for the period from 01/01/2013 (from the end of three months in which order under section 250 was received) to the date on which the refund is granted, at the rate of three per cent per annum or part thereof. (iv) to direct grant of interest on interest at the same rate as that of interest specified in section 244A (6% per annum) and 244A(1A) (3% per annum) (in aggregate 9% per annum) in compensation of depriving the petitioner of the amount of refund that became due to him under the provisions of the Act. (v) To pass such other and/or further order and/or orders as the Hon'ble High Court may deem fit and proper in the facts and circumstances of the case. 2. The facts, in brief, are that the petitioners paid self-assessment tax for the assessment year 2009-10 on 26.02.2010, declaring their total income to the tune of Rs. 68,27,080/- and Rs. 89,40,150/-, respectively, after claiming deduction of Rs. 1,00,000/- under Chapter VI-A of the Income Tax Act, 1961 (for short, 'the Act of 1961'). The returned income comprised income from house property to ....
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....5.10.2012 and, subsequently, a rectification order was passed on 09.05.2013. He would contend that the refund amount was paid by the department on 30.07.2018. Mr. Rao would further contend that the department has paid interest on the refund amount at the rate of 6% + 3% for the period from 01.06.2016 to 30.07.2018. He would submit that the petitioners are entitled for interest component in accordance with the provisions of Sections 244A and 244A(1A) of the Act of 1961, i.e., at the rate of 6% + 3% from the date tax was paid till date of refund. He would pray to allow both petitions. 5. On the other hand, learned counsel appearing for the respondents would oppose the submissions. Mr. Kumrani would submit that the tax liability was self-assessed by the petitioners and, therefore, they are not entitled to claim interest on the refund. He would contend that, prior to the amendment introduced by the Finance Act, 2016, Section 244A of the Act of 1961 did not contain any provision for grant of interest on refund arising out of self-assessment tax. He would contend that the provisions of Sections 244A and 244A(1A) of the Act of 1961 cannot be given retrospective effect. It is further su....
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.... this Act], he shall, subject to the provisions of this section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely:- (a) where the refund is out of any tax collected at source under section 206C or paid by way of advance tax or treated as paid under section 199, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of one-half per cent. for every month or part of a month comprised in the period,- (i) from the 1st day of April of the assessment year to the date on which the refund is granted, if the return of income has been furnished on or before the due date specified under sub-section (1) of section 139; or (ii) from the date of furnishing of return of income to the date on which the refund is granted, in a case not covered under sub-clause (i): [Provided that where refund arises as a result of an order passed by the Assessing Officer in consequence of an application made by the assessee under sub-section (20) of section 155, such interest shall be calculated at the rate of one-half per cent. for every month or p....
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....eriod starting from the first day of the assessment year to the date of grant of refund. No interest is, however, payable if the excess payment is less than 10 percent of tax determined under Section 143(1) or on regular assessment. No interest is payable for the period for which the proceedings resulting in the refund are delayed for the reasons attributable to the assessee (wholly or partly). The rate of interest and entitlement to interest on excess tax are determined by the statutory provisions of the Act. Interest payment is a statutory obligation and non- discretionary in nature to the assessee. In tune with the aforesaid general principle, Section 244A is drafted and enacted. The language employed in Section 244A of the Act is clear and plain. It grants substantive right of interest and is not procedural. The principles for grant of interest are the same as under the provisions of Section 244 applicable to assessments before 01.04.1989, albeit with clarity of application as contained in Section 244A. 39. In the present case, it is not in doubt that the payment of tax made by resident/ depositor is in excess and the department chooses to refund the excess payment of ....