| Question And Answer | |
|---|---|
| Subject: | INTEREST ON REFUNDS U/S 244A(1A) |
| Category: | Income-Tax |
| Querist: | RAJEY |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Interest, Interest refunds |
| Date: | March 29, 2022 |
The assessee company original assessment for asst year 2006-07 was completed u/s 143(3) in 2008. Assessee case was reopened in 2010 and 143(3)/147 was done in 2010.Assessee paid taX determined within 30 days in 2011. ASSESSEE preferred appeal and got part relief in 2011 from cit appeal.In itat also some relief was granted IN 2016/2019 .The assessee was given appeal effect order in 2022 january for both cit appeal and itat .(appeal effect given in jan 2022 for both).
However on perusal it is seen that interest u/s 244A is 6 pc per annum.The assessee feels that interest u/s 244A(1A) THAT IS ADDITIONAL 3 PC PER ANNUM BE ALSO GRANTED.
QUESTIONS:
1.WHAT SHOULD BE INTEREST PERCENT FOR LAST 11 YEARS.
2.HOW TO MOVE AFTER CREDIT OF REFUNDS AND INTEREST.WHETHER APPEAL LIES OF 147/250 APPEAL EFFECT ORDER AND 147/254 APPEAL EFFECT ORDER.OR RECTIFICATION WILL SUFFICE.THE AO IS SILENT ON 244A(1A) ALL TOGETHER.
Section 244 of the Income-tax Act, 1961 is a mandatory provision as it uses the term “shall” and the interest is applicable until the payment of refund.
The interest will be at the rate of 0.5 per cent per month.
The assessee can prefer a rectification application and an appeal on the said issue. If the same is being wrongfully denied, the assessee can also evaluate the possibility of filing a Writ Petition before the Hon’ble High Court.