PAY INTEREST ON REFUND IN CASES OF PREPAID TAXES
The Delhi Court has ruled in the case, Commissioner of Income Tax Vs, Sutlej Industries, that the
authorities have a duty to pay interest on refund in case of pre-paid taxes, including that paid on self-assessment. It reversed the view of the Commissioner of Income Tax (Appeals) who maintained that interest was not payable. The high court stated that interest was payable in case of self-assessment tax from the date of payment of self-assessment tax till the date of grant or refund. This was evident on an analysis of Section 244A of the IT Act as it is seen that where "refund of any amount" becomes due to the assesse, the assesse is entitled to simple interest thereon. Moreover, the high court state there was also a statutory liability on the revenue authorities to pay the interest on such refund on general principles to pay the interest on sums wrongfully retained.
authorities have a duty to pay interest on refund in case of pre-paid taxes, including that paid on self-assessment. It reversed the view of the Commissioner of Income Tax (Appeals) who maintained that interest was not payable. The high court stated that interest was payable in case of self-assessment tax from the date of payment of self-assessment tax till the date of grant or refund. This was evident on an analysis of Section 244A of the IT Act as it is seen that where "refund of any amount" becomes due to the assesse, the assesse is entitled to simple interest thereon. Moreover, the high court state there was also a statutory liability on the revenue authorities to pay the interest on such refund on general principles to pay the interest on sums wrongfully retained.
0 comments:
Post a Comment