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Interest on refund computed after 01-04-1989 to be in accordance with Sec. 244A though it relates prior AYs

October 16, 2020[2020] 120 taxmann.com 227 (Karnataka)
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INCOME TAX : By Direct Tax Laws (Amendment) Act, 1987, section 244A was inserted with effect from 1-4-1989 and was made applicable for assessment year 1989-90 onwards - Hence, if interest on any excess advance tax paid in a financial year has to be computed after 1-4-1989, same has to be computed in accordance with section 244A only and assessee would be entitled to interest in terms of section 244A only

• Hence, when an order of refund is issued, same should include interest payable on amount, which is refunded. If refund does not include interest due payable on amount refunded, revenue would be liable to pay interest on short fall.

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