Meghalaya HC allows Sec.
244A interest on TDS refund to assessee-deductee (a co-operative bank)
for AYs 2000-01 to 2003-04, but rejects ‘interest on interest’ claim; With
respect to TDS on assessee’s interest income wrongly deducted by certain
Central, State organisations (despite being exempt u/s. 80P), assessee made TDS
refund claim with interest before CBDT u/s. 119(2)(b) which was rejected; HC
allows assessee’s interest on refund claim u/s. 244A relying on SC ruling
in Tata Chemicals Ltd. and P&H HC ruling in National Horticulture Board,
but holds that in view of Sec. 244A(2), interest be allowed from the date
of making petition to CBDT and not before; Referring to factual matrix, HC
holds that “the delay in claiming refund, from the date it should have been
claimed for the relevant AYs and until 26.02.2008 (i.e date of filing petition
before CBDT) for each of the four AYs, is squarely attributable to the
petitioners alone”; HC further rejects assessee’s compensation
claim in the form of 'interest on interest', distinguishes its reliance on SC
ruling in Sandvik Asia Ltd., notes that assessee therein was made to wait for
refund of interest for decades and was hence greatly prejudiced for inordinate
delay on the part of the Revenue; Notes that in present case, the initial
long delay (prior to making application before CBDT) was attributable to the
petitioners themselves, further observes that " the question is as to
whether the present one had been a case of wanton or intentional inaction on
the part of the respondents to the extent that further compensation in the form
of interest over interest be allowed? In our view, the answer is in the
negative."; With respect to assessee’s TDS refund claim, HC
allows the same despite non-verification from concerned deductors relying on
Allahabad HC ruling in Rakesh Kumar Gupta , takes note of the TDS certificates
submitted by assessee.:HC
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