In Brief
In this income tax appeal, the Court considered whether an assessee is entitled to interest on a refundable amount assessed under Section 143(3) of the Income Tax Act that the Department kept and utilized before adjusting it against a demand of another assessment year. The Court upheld earlier decisions by the Commissioner of Income Tax (Appeals), the Income Tax Appellate Tribunal, and the High Court, holding that interest is payable under Section 244(1A) on such amounts when retained and used by the Revenue. The appeal was dismissed, confirming the assessee's entitlement to interest on the refundable amount held from March 1988 to July 1991.
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