Question And Answer
Subject: Section 244(1A)
Querist: Alok Kumar Shorewala
Answered by:
Tags: ,
Date: February 5, 2024
Query asked by Alok Kumar Shorewala

Order for A.Year 2004-05 was passed u/s 143(3) & deman created which was partially paid as we were in appeal,after CIT Appeals,Tribunal & High Court we got favourable order in our favour in 2012 & after writing & visiting department order u/s 262(3)/143 was passed on 2.7.2018 but refund was received on 27.10.2020 & later on received refund against interest on 18.8.2022 & after rectifications u/s 154 received refunds again on21.11.2023 I am asking interest u/s 244(1A) but department has paid interest @6% that too upto  2.7.2018 date of order passed u/s 262(3)/143,want clarification on same.

File Uploaded: Not Available

Answer given by

In Bombardier Transportation India Pvt. Ltd. v Dy. DIT (TDS) (2023)455 ITR 278 / 149 460 (Guj)( HC) for delay in granting refund pursuant to order of Tribunal which is affirmed by High Court . The assessee is entitled to refund with interest and additional interest. Court directed to comply the direction within three months and failure to comply the direction compensation shall be paid of Rs 1lakh . In Sicom Ltd. v. DCIT (Bom.)(HC), (WP. No. 2460 of 2018, dt. 01.10.2018) the Honourable Court passed strictures and held that the Dept should bring some order and discipline to the aspect of granting refunds. All pending refund applications should be processed in the order in which they are received. It is the bounden duty of the Revenue to grant refunds generated on account of orders of higher forums and disburse the amount expeditiously. In the absence of a clear policy, the Courts may impose interest on the quantum of refund at such rates determined by the Court .Registrar of High Court is directed to forward copy of the order to the PCIT and the Chairperson – Central Board of Direct Taxes.
The assesee should file detailed letter for requesting the refund with interest . In case no refund is issued the assessee may have to file writ before High Court .

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

Leave a Reply

Your email address will not be published. Required fields are marked *