Home › Tax Laws › Universal Cable Ltd. v. CIT( 2020) 420 ITR 111/312 CTR 1/ 185 DTR 33/ 270 Taxman 170(SC), www.itatonline.org Editorial: Order in Universal Cable Ltd. v. CIT ( 2009) 26 DTR 98/ (2011) 237 CTR 157 (MP ) (HC ) is set aside .

Universal Cable Ltd. v. CIT( 2020) 420 ITR 111/312 CTR 1/ 185 DTR 33/ 270 Taxman 170(SC), www.itatonline.org Editorial: Order in Universal Cable Ltd. v. CIT ( 2009) 26 DTR 98/ (2011) 237 CTR 157 (MP ) (HC ) is set aside .

S. 244A: : Refund – Interest on refunds – Unauthorized retention of money by the Department – The Department is directed to pay interest as prescribed .

Allowing the petition the Court held that , the  interest on refund is compensation for unauthorized retention of money by the Department. When the collection is illegal & amount is refunded, it should carry interest in the matter of course. There is no reason to deny payment of interest to the deductor who had deducted tax at source and deposited the same with the Treasury. The Department is directed to pay interest as prescribed u/s 244A at the earliest (UOI v. Tata Chemicals  Ltd (2014 ) 363 ITR 658 (SC) followed)  ( CA 3826 of 2012, dt. 12.12.2019)