2014 (4) TMI 236 - HC - Income Tax

Refund u/s 234D of the Act Interest on amount before the insertion of section 234D of the Act Held that - The decision in CIT v. Infrastructure Development Finance Co. Ltd. 2011 (9) TMI 591 - Madras High Court followed - the regular assessment was completed on March 30, 2004, and section 234D came into operation on and from June 1, 2003, prior to the completion of the regular assessment, the assessee was liable to pay interest on the excess refund amount received as contemplated under section 234D of the Income-tax Act Decided in favour of Revenue.

Summary

The High Court of Madras allowed the tax case appeal by the Revenue, stating that interest under section 234D can be charged even for refunds granted before the insertion of the section if the assessment was completed after its introduction. The decision was based on a previous court ruling in favor of the Revenue.