Assessee’s claim for refund of excess tax collected was withheld and refunded by department after a huge delay merely on ground of pendency of appeal filed by revenue. On writ the Court held that, since there was no stay granted by Appellate Authorities, assessee would be entitled to compensation by way of interest for such delay but assessee would not be entitled to interest on interest which was awarded as compensation. (AY. 2002-03)
Nirma Specific Family Trust. v. ACIT (2018) 100 taxmann.com 262 (Guj.)(HC) Editorial: SLP of assessee is for interest on interest is dismissed, Nirma Specific Family Trust. v. ACIT (2019) 262 Taxman 304 (SC)
S. 244A : Refunds–Interest on refunds-Refund of excess tax collected was withheld and refunded by department after a huge delay merely on ground of pendency of appeal filed by revenue– Entitle to interest however not entitle to interest on interest.[S. 243, 244]