Agricultural land belonging to the assessee was acquired by the State of Gujarat under the ‘Survo Scheme’. The Land Acquisition Officer awarded compensation, and pursuant to enhancement by the Reference Court, the Irrigation Department deducted tax at source on the interest component of the compensation while depositing 50% amount with the Court. However, the deductor neither informed the assessee about such tax deduction nor issued Form 16A. The assessee, upon becoming aware of the deduction, filed an application for condonation of delay in filing the return of income to claim refund. The delay was condoned under section 119(2)(b), but the Revenue denied interest on the refund on the ground that the claim was belated. The High Court held that the assessee was not at fault in not filing the return on time, as the deductor failed to comply with its statutory obligations, and further held that no tax was deductible under section 194LA on interest paid on acquisition of agricultural land. Accordingly, the Hon’ble High Court directed the Revenue to grant interest on the refund from the date of deposit of TDS till the date of refund under section 244A.The Revenue filed a Special Leave Petition before the Hon’ble Supreme Court with a gross delay of 471 days, which was not satisfactorily explained. The Supreme Court dismissed the SLP on the grounds of delay as well as on merits, holding that no reason was made out to interfere with the order of the High Court. Accordingly, the direction to grant interest on the refund from the date of TDS deposit till the date of refund was upheld.(AY. 2013-14)