2002 (11) TMI 25 - HC - Income Tax

Interest on refund - Whether, in the law and on facts, the Commissioner of Income-tax (Appeals) was justified in directing the Income-tax Officer to recalculate the interest under section 244(1A) and issue appropriate refund orders to the assessee and the Tribunal was right in law in confirming the view taken by the Commissioner of Income-tax (Appeals) ? - section 244(1A) of the Act clearly mention that whenever an additional amount of refund becomes payable to the assessee, or when the order of penalty paid by the assessee is quashed and set aside, the assessee becomes entitled to interest on the amount which becomes payable to the assessee Hence AO was justified in awarding interest on refund

Summary

The High Court of Gujarat upheld the decision of the Commissioner of Income-tax (Appeals) directing the Income-tax Officer to recalculate interest under section 244(1A) and issue appropriate refund orders to the assessee. The court ruled that the assessee was entitled to the interest amount as per the provisions of the Act, and the Tribunal did not err in confirming the Commissioner's decision. The judgment favored the assessee over the Revenue.