If tax, interest, penalty, etc., has been collected in excess and it is withheld beyond permissible period under Act, Revenue should compensate for same

September 25, 2014[2014] 49 taxmann.com 142 (Andhra Pradesh)
IT : If tax, interest, penalty, etc., has been collected in excess and it is withheld beyond permissible period under Act, Revenue should compensate for same
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[2014] 49 taxmann.com 142 (Andhra Pradesh)
HIGH COURT OF ANDHRA PRADESH
Sirpur Paper Mills Ltd
v.
Joint Commissioner of Income-tax, Hyderabad*
G. CHANDRAIAH AND CHALLA KODANDA RAM, JJ.
WRIT PETITION NO. 5807 OF 1999
MARCH  20, 2014
Section 244A of the Income-tax Act, 1961 - Refunds - Interest on (General principle) - Assessment year 1984-85 - Whether revenue is entitled to collect only tax, interest, penalty etc., within four corners of Act - Held, yes - Whether when any amount has been collected by revenue in excess and, it is withheld beyond period permissible under statute, taxpayer is entitled to be compensated for deprivation of said amount; such compensation would be in form of penal interest on revenue which may be up to 15 per cent and be levied for period from date of assessment till date of refund - Held, yes [Para 4] [In favour of assessee]