Section 214, read with section 244A, of the Income-tax Act, 1961 - Advance tax - Interest payable by Governmen

IT: For delay in refund to assessee, it is only interest provided for under statute which may be claimed by an assessee; only for inordinate delay of decade(s) compensation is to be paid
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[2014] 42 taxmann.com 1 (SC)
SUPREME COURT OF INDIA
Commissioner of Income-tax, Gujarat
v.
Gujarat Fluoro Chemicals*
H.L. DATTU, SUDHANSU JYOTI MUKHOPADHAYA AND M.Y. EQBAL, JJ.
SPECIAL LEAVE PETITION (C) NOS. 11406 OF 2008 AND OTHERS
SEPTEMBER  18, 2013
Section 214, read with section 244A, of the Income-tax Act, 1961 - Advance tax - Interest payable by Government [Interest on interest] - Whether interest is payable by Revenue to assessee if aggregate of instalments of advance tax or TDS paid exceeds assessed tax - Held, yes - Whether in Sandvik Asia Ltd. v. CIT [2006] 280 ITR 643/150 Taxman 591 (SC) Supreme Court had concluded that, where there is an inordinate delay of decade(s) on part of Revenue in refunding certain amount which included statutory interest, Revenue has to pay compensation for same; not an interest on interest - Held, yes [Paras 7 & 8] [Partly in favour of revenue]
Section 244A of the Income-tax Act, 1961 - Refunds - Interest on [Interest on interest] - Whether section 244A provides for interest on refunds under various contingencies and it is only that interest provided for under statute which may be claimed by an assessee from Revenue and no other interest on such statutory interest - Held, yes [Para 8] [In favour of revenue]
CASES REFERRED TO

Sandvik Asia Ltd. v. CIT [2006] 280 ITR 643/150 Taxman 591 (SC) (para 1).
Rajiv Dutta for the Petitioner. Arijit Prasad, Rahul Kaushik and Ms. Sadhna Sandhu for the Respondent.