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7. Statutory curiosity below Portion 244A of the Act is payable about the refund of excessive desire paid out less than Sections 234A-C from the Act.
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The rate of interest would be to be the same as the speed in the typical fascination billed According to the provisions of your Act.(Sandvik Asia Ltd. vs. CIT ). Even so, a Full Bench in the Supreme Court has held that under the new Segment 244A on the Act, only statutory interest is leviable, and the ruling in Sandvik Asia should be to be construed as only granting compensation for delay in granting interest on refund. Sandivk Asia Hence stands overruled. The facts in Sandvik Asia case for among the list of a long time(AY 1977-1978) ended up as follows:
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Area 237 states that if anyone satisfies the Assessing Officer that Visit Website the level of tax paid out by him or on his behalf or handled as compensated by him or on his behalf for a selected assessment 12 months exceeds his revenue tax liability for that calendar year, he shall be furnished a refund of the excess.
Where by the refund arising to your taxpayer is out of any tax deducted/collected at source or tax paid out Through advance tax, then the taxpayer shall be entitled to fascination calculated at the rate of one-50 percent % for every month or part of per month. Fascination in this kind of case shall be authorized to get a time period commencing with the 1st working day of April of the evaluation 12 months to your date on which the refund is granted If your return of revenue is furnished on or prior to the due day check out this site of submitting of return specified under portion 139(1) if not fascination shall be authorized from your day of furnishing of return of earnings on the date on which the refund is granted
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(i) It cannot be stated that no intimation was issued to your assessee. Equally the intimations have been admittedly acquired through the assessee on five.8.2019 and at ideal it could be mentioned that no opportunity for responding into the intimations was presented to your assessee.
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