Dismissing the appeal of the Revenue the Court held that the Department had not disputed that the payment of interest by the assessee under section 234D(2) and section 220(2) was in pursuance of the demand raised and which demand subsequently had been found to be incorrect and the money had become due and payable by it to the assessee. (AY.2001-02)
PCIT v. Punjab and Sind Bank (2022) 447 ITR 289 / 218 DTR 231/ 328 CTR 874 /(2023) 290 Taxman 479 (Delhi)(HC)
S. 244A : Refunds-Interest on refunds-Reduction in income on Recomputation-Interest claimed does not tantamount to interest on interest-Obligation of department to grant interest. [S. 2(28A), 143(3), 154, 220(2), 234D(2), 244A(1)(b)]