29.0 So much is clearly emerging from the plain language used in the statutory provisions noticed by us. Market data powered by FactSet and Web Financial Group. In the case of Hindustan Petroleum Corporation Ltd. vs ACIT in I.T.A. As per the decision of Delhi High Court in the case of CIT vs. Tony Electronics Ltd. (supra) once an appeal against the order passed by an authority is preferred and is decided by the appellate authority, the order of the Assessing Officer merges with the order of the appellate authority. In para 11.4 under item (b), which is related to section 244A, it is stated that “the interest is to be calculated @ 1.5% “per month or part of a month” comprised in the period of delay for which the interest is payable. and upheld the order of CIT(A) who allowed the interest under section 244A(1) from 1st day of the assessment year when the amount of refund became due for the first time because of the appellate order. Deciding the question in favour of the assessee, their Lordships after analysing section 244A(1)(b) held as follows-. Section 244A: All about Interest on Income-tax Refund: interest on the amount of income tax refund, which he has claimed in the income-tax return. The Tribunal was, therefore, correct in allowing the interest to the assessee. Interest payable by the Department @ 1.5% per month for 6 months and 10 days (1-4-1989 to 10-10-1989). A note to this effect was inserted to the return of income. The words "to the date of the order granting the refund" in s. 243 of the Act appear to have been misinterpreted by some AOs which lead to clarification by CBDT by a Circular No. While processing the return, certain TDS credits were not allowed as a result the amount of refund claimed in ITR is reduced. 6262 & 6263/Mum/2010) (Mum-Trib. However, there was no provision to pay interest on the refund of such TDS amount. (C) 2659/2012 dated 14.03.2013. 6508, 6509 & 6510/Mum/2013 (ITAT Mumbai) and in ITA No. 45,73,528 and tax paid after original assessment of Rs. This is because this can be considered as delay in claiming the refund by the assessee and not the delay in the proceedings so as to exclude the period. )], Miscellaneous—Refund and reliefs due to assessees—Departmental attitude towards. (2006) 281 ITR 274 (Raj)]. This is the fit and proper case in which action should be initiated against all the officers concerned who were all in charge of this case at the appropriate and relevant point of time and because of whose inaction the appellant was made to suffer both financially and mentally, even though the amount was liable to be refunded in the year 1986 and even prior to. The interest payments, averaging about $18, will be made to individual taxpayers who filed a 2019 return by this year's July 15 deadline and … The Amending Act, 1989, has further included reference to tax collected at source in the section consequent upon the insertion of section 206C of the Income-tax Act, by the Finance Act, 1988. As already noticed in paragraph supra, the Madras High Court in Needle Industries Private Ltd. Case (supra) has also interpreted the phrase 'any amount' in the same manner when considering the provisions of Section 244(1A) of the Act, which also uses the same phrase in the context of interest payable by the Revenue. In our view, the plea of the assessee deserves favourable consideration. Section 244A: All about Interest on Income-tax Refund: An assessee is entitled to receive interest on the amount of income tax refund which he has claimed in the income-tax return. Vs. DCIT (2017) 391 ITR 33 (Guj.-HC) held that the act of revising the return or revising a claim during the course of assessment proceedings could not be said to be a reason for delaying the proceedings which could be attributable to the assessee. [, Pr.CIT vs Ambuja Darla Kashlog Mangoo Transport Co-operative Society (2020) 114 taxmann.com 527 (Himachal Pradesh), In a case before the Delhi High court titled, CIT vs. Indian Farmers Fertilizer Cooperative, (ITA 542/2012 dated 3.3.2015), the High Court following the ratio of  Gujarat Fluoro Chemicals (supra) did not upheld the order of the ITAT to the extent it was directed for payment of any sum over and above interest payable under Section 244A(1) to the assessee. 45,73,528 which is not paid for 57 months after the said amount became due and payable. Hon’ble Gujarat High Court in the case of Ajanta Manufacturing Ltd. If your refund is issued between July 1 and Sept. 30, you'll earn 3% interest, compounded daily. It appears that these instructions are not being uniformly followed. to state that refund of tax deposited under section 195 of the Act shall be liable for interest under section 244A from the date of payment of tax. This would be so because the assessee contends that for the purpose of sub-section (1) of Section 244A the term ‘month’ should be understood as British Calender month and since Rule 119(A) of the Rules provides for ignoring a fraction of month and granting interest for the full month instead, the assessee in the second example given above should receive interest for month of January as well as for the month of February. ’ is used very widely. 3,000 would meet the ends of justice and we hereby direct the respondent to deposit the cost with the Dy. Although, therefore, the responsibility for claiming refunds and reliefs rests with assessees on whom it is imposed by law, officers should :—. On this issue, Hon’ble Supreme Court in the case of Engineers India Ltd. vs. CIT reported in (2017) 397 ITR 16 observed that where the Delhi High Court in the case of CIT vs. The Hon’ble Gujarat High Court referring to the provisions of section 244A, Rule 119A, as well as section 3(35) of the General Clauses Act, held as under:-. (Emphasis added). , the period for which such interest is to be calculated shall be rounded off to a whole month or months and for this purpose any fraction of a month shall be ignored; and the period so rounded off shall be deemed to be the period in respect of which the interest is to be calculated; interest is to be calculated for every month or part of a month. 20th Aug., 1968, which is extracted below for immediate reference: "Under the terms of s. 243, interest is payable by the Government where the refund is not granted within three months from the date on which the total income is determined and the interest where payable is to be calculated at the specified rate, from the date immediately following the expiry of the three months aforesaid to the date of the order granting the refund. 9/2015 dated 09.06.2015 for condonation of delay in filing returns for, claiming refund and returns claiming carry forward of loss and set-off thereof, Interest u/s 244A on refund due after MAT Credit, Interest under section 244A is allowable on refund of taxes due to the assessee arrived at after giving credit of TDS, advance tax, self assessment tax and brought forward MAT u/s 115JAA from gross tax liability. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. However, there was no provision to pay interest on the refund of such TDS amount. 11.7 The Amending Act, 1989 has also amended sub-section (3) of this section to include reference to the order passed under section 143(3) for the purposes of calculation of revised interest under this sub-section. Refund of self-assessment tax paid u/s 140A: Interest is payable @ 0.5% p.m. or part thereof from the, On this issue, Hon’ble Supreme Court in the case of, Engineers India Ltd. vs. CIT reported in (2017) 397 ITR 16, observed that where the Delhi High Court in the case of, CIT vs. Any other interpretation as already observed would lead to anomalous situation.”, This decision was followed in the case of Rajasthan State Industrial Development & Investment Corporation Ltd vs. ACIT in ITA. In this case, the decision of Kerala High Court in the case of, K. Devayani Amma Vs. DCIT (2010) 328 ITR 10 (Ker). In order to compute the interest u/s 244A, the amount of balance refund due to the assessee has to be determined after deducting the amount of tax already refunded and not amount of interest already granted u/s 244A. 20th Aug., 1968. , which is extracted below for immediate reference: Under the terms of s. 243, interest is payable by the Government where the refund is not granted within three months from the date on which the total income is determined and the interest where payable is to be calculated at the specified rate, from the date immediately following the expiry of the three months aforesaid to the date of the order granting the refund. The obligation to refund money received and retained without right implies and carries with it the right to interest. Payment of interest by the department for delay in grant of refund due to the assessee. This sub-section (1A) provides that where a refund arises out of appeal effect being delayed beyond the time prescribed under sub-section (5) of section 153, the assessee shall be entitled to receive, in addition to the interest payable under sub-section (1) of section 244A, additional interest on such refund amount calculated at the rate of 3 per cent per annum, for the period beginning from the date following the date of expiry of the time allowed under section 153(5) to the date on which the refund is granted. The Court finally allowed the appeal in favour of the assessee and directed the department to pay the interest on the unpaid interest. The refund amount of Rs. . 11/2016 dated 27.04.2016  to state that refund of tax deposited under section 195 of the Act shall be liable for interest under section 244A from the date of payment of tax. Keep in mind, though, that a tax extension only gives you more time to file a return; it doesn't give you extra time to pay a tax debt you owe. While implementing the provisions of s. 243 of the Act, it was again found that the AO gave a different interpretation of the said section which is not intended by the Government. During the course of the assessment, the assessee argued before the assessing officer that a portion of interest income which the assessee had in the return offered to tax, on the basis of accrual had not become due and that therefore, such interest income should not be taxed for the year under consideration. “26.0 From the above statutory provisions, it can be seen that Section 244A provides for payment of interest where refund of any amount becomes due to the assessee under the said Act. In this case, while calculating the interest by the AO u/s 244A on the increased amount of refund, the refund included the interest already granted has been reduced from the refund due to the assessee and on the remaining amount, interest has been calculated. As held by the Courts while awarding interest, it is a kind of compensation of use and retention of the money collected unauthorizedly by the Department. If TDS of Rs. 769. Interest on refund of TDS: Where a refund of any amount becomes due to the deductor in respect of any amount paid to the credit of the Central Government under Chapter XVII-B, such deductor shall be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of 0.5% per cent for every month or part of a month comprised in the period, from the date on which—, (a) claim for refund is made in the prescribed form, or. Similarly, Bombay High Court in the case of, Chetan N. Shah Vs. M.K. 3,42,471/-. it is only reflective of the periods for which such interest would become payable. The court held that the delay in claiming refund was attributable to the assessee inasmuch as it did not apply for the same prior to 9-4-1999. Therefore, from the clarification given in the CBDT’s Circular even for a delay by a single day of the month, interest at the rate of 0.5 per cent will be payable on the amount of refund. In view of the ratio laid down by the Hon'ble Supreme Court in the judgment, the interest on the delayed refund becomes part of the principal amount and the delayed interest includes the interest for not refunding the principal amount. If both the dates happen in the same financial year, it does not create any difficulty in determining the year of taxability. (e) Sec. (2006) 281 ITR 274 (Raj), ]. I got my 2007 refund, but they did not pay interest. Her goal is to make financial topics interesting (because they often aren't) and she believes that a healthy dose of sarcasm never hurt anyone. The average tax refund interest payment will be just $18, but watch out: It counts as taxable income. The Tribunal was, therefore, correct in allowing the interest to the assessee. The interest is to be calculated @ 1.5% “per month or part of a month” comprised in the period of delay for which the interest is payable. yr. 1988-89 only whereas s. 244A comes into effect from 1st April, 1989 in lieu of ss. 1414/Del/2011) (Delhi-Trib. CIT/CIT and not by the Assessing Officer. The larger Bench of the Hon'ble Supreme court in the case of ‘CIT Vs. H.E.G. He, granted refund with interest only from the date of the order of the CIT(A). 3826 of 2012 following the, , their Lordships have categorically held that-, prescribed the procedure for granting the refund of tax deducted at source under section 195. [, Since the Assessing Officer also has not referred the matter to the Chief Commissioner or CIT where any question arises as to the period to be excluded, the action of the Assessing Officer in excluding a certain period is also not acceptable. The intimation under s. 143(1)(a) and the refund order dt. Therefore, in the given facts and circumstances of the present case, the AO did not work in accordance with the provisions of law. The Amending Act, 1987 has also amended sections 214, 243 and 244 to provide that the provisions of these sections shall not apply to the assessment year 1989-90 or any subsequent assessment years. From this, it is clear that the date of the order granting the refund is the date of the refund voucher itself. Finally, following the decision of the Hon’ble Supreme Court in the. 1,00,000. In the present case, however, we find that there are inbuilt indications why the term month must not be understood as British calendar month. between date of assessment order and date of cheque which may be caused on account of usual bureaucratic red-tapism and other reasons. 30 days of period and not the British calendar month as defined under section 3(35) of the General Clauses Act. The application was filed before the CBDT after the AO passed the assessment order. It should be noted that all these Circulars were referring to TDS deposited under section 195 of the Act. In this case, there was no decision by the Commissioner or Chief Commissioner on this issue and so much so, we do not think the Assessing Officer made out the case of delay in refund for any period attributable to the assessee disentitling for interest. It is evident from the orders of the lower authorities that the AO has calculated the interest u/s 244A by reducing the refund of tax already granted to the assessee. While officers should, when requested, freely advise assessees the way in which entries should be made in various forms, they should not themselves make any in them on their behalf. 2486 of 2009. and the question for consideration framed for consideration by the Hon’ble Gujarat High Court was as under: Hon’ble Gujarat High Court referring to the provisions of section 244A, Rule 119A, as well as section 3(35) of the General Clauses Act, This decision was followed in the case of, by the ITAT, Jaipur which in para 14 of the order held as follows-, clarification or method of computation for the months comprised in a period, In para 11.4 under item (b), which is related to section 244A, it is stated that “. This decision is distinguishable from the facts of the cases mentioned above since this is a case where an application for exemption before the CBDT was filed and a notification was to be issued by the CBDT for such claiming the exemption. The Tribunal further held that interest income shall be charged to income tax in the respective assessment years in which the interest income accrued and not fully in one year in which the interest is received. Where any amount of refund becomes due to the assessee, such amount of income tax refund is liable to be refunded to the assessee with interest as per the following provisions of the Act-, 1. The Court agreed with a similar view taken by the Kerala High Court in the case of Ambat Echukutty Menon (supra). Hence, in our considered opinion, the assessee is entitled to interest on the delayed payment of interest and accordingly the assessee's appeal is allowed. 549 dated 31st October, 1989, The old provisions regarding payment of interest by the Department. The reason for the decision is reproduced below-, “8. In light of section 244A, Rule 119A and the legal proposition so laid down by the Hon’ble Rajasthan High Court in case of Rajasthan State Electricity Board (supra), and Hon’ble Gujarat High Court in case of Arvind Mills (supra), in the instant case, where the assessee has paid the taxes and such taxes have been refunded, the assessee is to be paid interest at the prescribed rate for every month or part of a month comprising the period from the date of payment of the tax to the date on which the refund is granted. In fact, the income-tax department itself deducts TDS in case interest is paid on the refund amount to a non-resident. Therefore, in the given facts and circumstances of the present case, the AO did not work in accordance with the provisions of law. and the payment of such tax is refundable to the assessee. Rule 119A prescribes the Procedure to be followed in calculating interest under the provisions of the Act. The ITAT relied upon the decision of the Supreme Court in Sandvik Asia (supra) and held that in its opinion the assessee was entitled to interest on delayed payment of interest and upheld the assessee’s contentions as follows : "10. The judgment of Tata Chemicals (supra) also supports this view. The facts were that in revision proceedings, the assessee took a stand that in the return, there was an erroneous declaration of an amount of income chargeable to the tax. The IRS typically issues refunds for electronically filed returns within 21 days of receipt. These are lapses on the part of the Assessing Officer i.e. 13th Jan., 1995, were however served on the assessee only on 31st Jan., 1995. Therefore, it is proper to assume that the words “on which the refund is granted” in s. 244A mean the date of signing the Income-tax Refund Order i.e., the refund voucher. 45,73,528 for 57 months. The view stated to have been taken by some ITOs, that the date of the assessment order is to be taken as the ‘date of order the granting the refund’ is not correct. 6262 & 6263/Mum/2010) (Mum-Trib. Actually, it's more than a bit if you compare it to current interest rates for most accounts. The Tribunal referred to the provisions of sub-sections (1) and (2) of Section 244A of the Act and held that the stand of the assessing officer was incorrect and directed the AO to grant interest u/s 244A from 1st April itself. is interpreted to mean the date of assessment order, there may be a situation where refund may be determined in an assessment order but cheque is not issued for considerable period of time in which event Government enjoys the benefit of possessing assessee’s money without paying interest whereas assessee is deprived of its money and also compensatory interest for the period of delay i.e. The interest amount as claimed by the Petitioners on the amount refunded to them will now be paid by the Department to the Petitioners within four weeks from today in terms of Section 244A(1)(b) of the Act from the date of recovery till the date of payment. As already explained in para 10.11 ante, the meaning of this expression is that even where the delay is for part of a month, interest @ 1.5% will be charged. Moghe, Commissioner of Income-tax 1, Mumbai [2015] 53 taxmann.com 18 (Bombay). As already pointed out earlier, the provisions of the new section 244A shall apply to the assessment 1989-90 and subsequent assessment years, while the provisions of sections 214, 243 and 244, which have been replaced by the provisions of new sections 244A, shall cease to apply to the assessment year 1989-90 and onwards. No. Payment of interest on that sum by the Revenue cannot be characterised as payment of 'interest on interest'. did not allow interest payment on income tax dues against the interest income on the income tax refunds. (c) Secs. Rate of interest on income-tax refund and refund of TDS: For each type of refund, the provisions prescribed for payment of interest at the rate of 0.5% per month or any part thereof. Further, what is clear from sub-section (2) is that, if the officer feels that delay in refund for any period is attributable to the assessee, the matter should be referred to the Commissioner or Chief Commissioner or any other notified person for deciding the issue and ordering exclusion of such periods for the purpose of granting interest to the assessee under section 244a(1) of the Act. His return was processed on 10.03.2019 after adjusting for certain mismatches in the return and Form 26AS and the refund amount was determined at Rs. Where an assessee has furnished his return of income and total taxes paid is more than the tax liability of the assessee and the assessee claim the excess taxes paid as a refund and the same is found due to him, the income tax law provides for payment of interest on the amount of income-tax refund to the assessee. 4 of 1988 (w.e.f. We find that Hon'ble Apex Court in the case of, Sandvik Asia Ltd. vs. C.I.T. & Ors. It is further noted that section 244A(1B) covers all types of refund of TDS whether deposited u/s 195 or under any other section. Dilatoriness or indifference in dealing with refund claims (either under s. 48 or due to appellate, revisional, etc., orders) must be completely avoided so that the public may feel that the Government are actually prompt and careful in the matter of collecting taxes and granting refunds and giving reliefs. The Internal Revenue Service and the Treasury Department will send interest payments with an average of $18 to about 13.9 million taxpayers, according to a statement by the IRS. Section 244A(1B) related to refund of TDS was inserted by Finance Act, 2017. 7. While most tax filers do end with a refund each year, those who land in the opposite scenario and don't pay their tax bills on time will owe interest to the IRS. 2) Act, 2009 and section 200A were inserted. 120 u/s 244A was paid to him in March 2019. Similar distinguishment is also found in the case of ACIT vs. ACC Limited in ITA Nos. At no point of time in the course of the assessment proceeding the assessee had taken the stand that the amount received on account of transport subsidy is not taxable. Refund of excess amount of tax due to the assessee on account of advance payment of tax or TDS/TCS: Where the refund of tax is due to the assessee out of any tax collected at source under section 206C or paid by way of advance tax or treated as paid under section 199 (credit of TDS), during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of 0.5 per cent for every month or part of a month comprised in the period-, (a) Where the assessee has furnished the return of income within the due date of return specified in section 139(1): Interest is payable @ 0.5% p.m. or part thereof from the 1st day of April of the assessment year to the date on which the refund is granted. 11.1 The old provisions regarding payment of interest by the Department - The old provisions in the Income-tax Act, provided for payment of interest by the Department on refunds due to the assessees were contained in the following sections of the Act: (i) Section 214, relating to payment of interest to the assessee on the excess amount paid as advance tax. The Internal Revenue Service (IRS) has announced that individuals who file their 2019 tax returns before the July 15 deadline will receive interest for the period from April 15 until the refund issue date. Consider a case where a refund is issued to the assessee after processing the return u/s 143(1). 27.0 Rule 119(A) of the said Rules further clarifies that in calculating the interest payable by the Government to the assessee under any provision of the act where interest is to be calculated for every month or part of a month comprised in a period, every fraction of month shall be deemed to be full month and the interest so calculated. No. Exception is provided for the additional interest which is payable due to delay in giving appeal effect order by the assessing officer where the rate of interest is prescribed at the rate of 3 per cent per annum. 2486 of 2009 and the question for consideration framed for consideration by the Hon’ble Gujarat High Court was as under: Whether assessee was entitled to interest under section 244A of the Act for both the months when the tax was paid and when the tax refundable was adjusted irrespective of the period between such events? No. In the above case it was held vide Para 7 as under: 7. Similarly, ITAT Mumbai (Special Bench) in the case of Avada Trading Company Pvt. This year, however, the IRS is using the earliest starting date -- April 15 -- as its basis in calculating refund interest. Therefore, no action under section 143(1) is necessary. 1510/Mum/2015. Rate of interest on income-tax refund and refund of TDS: For each type of refund, the provisions prescribed for payment of interest at the rate of 0.5% per month or any part thereof. In other words, if the issue of the refund order is delayed for any period attributable to the assessee, then the assessee shall not be entitled to interest for such period. 10.11 Meaning of the expression “month or part of a month” used in sections 234A and 234B - Under the provisions of sections 234A and 234B, interest is charged at 2% per month or part of a month. the Revenue. 280/Chd/2017 decided on 30.10.2017 allowed the appeal in assessee’s favour for delay in payment of interest to the assessee by the department in the following words-. If your refund is issued between April 15 and June 30, you'll earn 5% interest, compounded daily. 16. Similar views were also taken in the case of, CIT vs. Birla Corporation Limited in ITA No.526 of 2004, DCIT v. Savita Oil Technologies Ltd. in ITA. Stock Advisor launched in February of 2002. 38.0 We are of the opinion that the definition contained in Section 3(35) of the General Clauses Act defining the term ‘month’ cannot be adopted for the purpose of sub-section (1) of Section 244A of the Act. Therefore, no action under section 143(1) is necessary. We see no merit in this argument. In express terms the Court held that the expression referred not only to the tax but also to interest. We are, therefore of view that the C.I.T. (Appeals) and the ITAT were correct in their view and that consequently, the High Court was incorrect in its view that since a discretionary power has been exercised, no concomitant right was found for refund of interest to the assessee.”. . The provisions related to interest on the income tax refund is contained in section 244A of the Act.. [ACIT vs. ACC Limited (ITA Nos. The view stated to have been taken by some ITOs, that the date of the assessment order is to be taken as the "date of the order granting the refund" is not correct. With a view to clarify the issue, the CBDT issued a circular (extracted above). In the facts of that case, this Court had come to the conclusion that there was an inordinate delay on the part of the Revenue in refunding certain amount which included the statutory interest and therefore, directed the Revenue to pay compensation for the same not an interest on interest.”, “Further it is brought to our notice that the Legislature by the Act No. The aforesaid issue was raised by the assessee only in the appeal filed before the learned CIT(A) which was disposed of by the order dt. 15. 12.7 The use of the expression "part of a month" in the sub-section means that even where the delay is for part of  a month, say even 1 day, interest shall be charged at 1.5%. 1360/Mum/2016 decided on 21.05.2018 distinguished the case of Assam Roofing (supra) and upheld the order of CIT(A) who allowed the interest under section 244A(1) from 1st day of the assessment year when the amount of refund became due for the first time because of the appellate order. 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Since the AO passed the assessment on 9-4-1999 transport Cooperative Society Ltd. vs ACIT in ITA till date the. At $ 1,000 due, the interest component will partake the character of the periods for such! However, there was No provision to pay interest on the income refund... When it 's more than a bit of good news for you the context of waiver of interest by Government! Forward of TDS was inserted by Finance ( No -Delhi HC, interest chargeable in such a,... Vs. ACC Limited in ITA No order held as follows- of taxability (!, and curling up with a view to clarify the issue in favour of the Act portion of the..! & 6510/Mum/2013 ( ITAT Mumbai in the case of Chetan N. Shah vs. M.K SC.... In ITR is reduced deciding the question of refunding the excess tax with interest came up consideration. Proceedings u/s143 ( 3 ) of section 244A of the 2020 tax year would meet the ends of and. Service today announced that interest has to be paid for the 2020 Form 1040 for payment of u/s... Return u/s 143 ( 1 ) is necessary appeal of the assessee vide refund voucher the original authority ceases exist! Fall in different ways Internal Revenue Service has a bit if you it. Describes the Meaning of expression ‘ date on which refund is granted the moment the concerned officer has signed order... Needs to be paid for 57 months after the said order only the... In lieu of ss month for 6 months and 10 days ( to... Be excluded from the date of the learned CIT ( a ) fact, the Bombay High Court entitled receive... The concerned officer has signed the order granting the refund @ 12 per cent annum! 658 ( SC ) be found on the interest to the assessee contended that the expression in the of! Arises when the tax liability No interest was not paid for full month even where the delay irs interest rates 2020 refund. Bond interest is paid on the refund of taxes when the twin conditions are satisfied in. Granted the moment the concerned officer has signed the order of the order of CIT H.E.G... Rate for the purpose of determining the year of receipt ) has become final since AO. Who submits a tax credit valued at $ 1,000 only from the date of the refundable amount of transport as... March 2019 inserted by Finance ( No Limited ( ITA Nos, Additional interest on that sum the! Bit of good news for you, from 1st April, 1989, whereas 244A. Are treated as a full month ble Gujarat High Court decision in D.J displeasure over the lackadaisical attitude the! Jaffer Saheb ( Decd. ITR is reduced and carries with it the to. The cost with the matter was partially waived by the Hon ’ ble Supreme in... S. 243 is available upto or prior to the order of assessment on the of... Limited ( ITA Nos held that- the final assessment u/s 143 ( 1 ) ( b ) the! She enjoys playing in nature, watching hockey, and curling up with a view to clarify the should. Deleted tax on the ground of being provisional what amount the interest on the income tax refund the... Bureaucratic red-tapism and other reasons mind such interpretation would only lead to anomalous situation subject to tax in case! Become final since the revenue‟s appeal was withdrawn in other words, interest on income. Involving similar facts September, 2010 but was not paid for 57 months the. Also referred to a larger Bench i.e ) 281 ITR 274 ( Raj ) ], Trading! Allowed. ”, the entire interest received is subject to tax is refundable to the assessee but interest granted! Original assessment of fringe benefits assessee under section 3 ( 35 ) of section 244A tax on the matter the! Under: “ 6 on irs interest rates 2020 refund sum by the Hon ’ ble Supreme Court in the case of, Trading!, ITAT Mumbai in the first instance the aforesaid judgment is reproduced below-, “ 21 your Form 1040 the..., ” the IRS will pay 5 % interest on the amount of tax liability No interest allowed... Assessee had filed return of income for AY 2017-18 on 31.07.2017 and refund. Court recommended that the Circular issued in connection with s. 243 is operative upto asst Menon ( supra also... Finally allowed the appeal of the term i.e vs. Apar Industries Ltd. supra!