23 July 2013

CBDT Instruction Regarding Grant Of Interest U/s 244A On Refunds


CBDT Instruction Regarding Grant Of Interest U/s 244A On Refunds


Pursuant to the judgement of the Delhi high Court in Court On Its Own Motion Vs, UOI 352 ITR 273 the CBDT has issued Instruction No. 7/2013 dated 15.07.2013 stating that when the delay in processing the refund is not attributable to the assessee but is due to the fault of the Revenue, interest should be paid under section 244A of the Income-tax Act. The High Court had held that false or wrong uploading of past arrears and failure to follow the mandate before adjustment is made under Section 245 of the Act, cannot be attributed and treated as fault of the assessee. The CBDT has directed that in view of the direction of the High Court, in no case should interest u/s 244A of the Act be denied to the assessee where the assessee is not at fault. It is also stated that the observation of the High Court should be strictly kept in mind while dealing with such matters

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