In Brief
Engineers India Ltd challenged the High Court's refusal to grant interest under Section 244A of the Income Tax Act on a refund of self-assessment tax. The High Court had disagreed with an earlier Coordinate Bench judgment on this issue without referring the conflict to a larger Bench. The Supreme Court held that when a Division Bench intends to differ from a Coordinate Bench on a legal question, it must refer the matter to a larger Bench rather than simply dissent. The Court set aside the High Court's judgment and remanded the case for reconsideration by a larger Bench.
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