HC allows writ, directs Revenue to pay 'compensation' for delay of 11 years in payment of interest on refund due to assessee u/s 214; Relies on Sandvik Asia ratio, which held that Revenue entitled to only "tax, interest, penalty etc. within four corners of law "; Any amount collected in excess and if withheld by Revenue beyond statutorily permitted period, would entitle taxpayer to compensation; Apex Court, in Sandvik, extensively considered meaning of the word 'compensation'; Awards 9% interest p.a. for period 1987 to 1998 : Andhra Pradesh HC
The ruling was delivered by division bench of Justice G. Chandraiah and Justice Challa Kodanda Ram.
Advocate P. Muralikrishna argued on behalf of the assessee, while the Revenue was represented by Advocate S.R. Ashok.
Taxsutra Note:
A three judge bench of SC, in Gujarat Fluoro Chemicals [TS-491-SC-2013], held that only interest under statute can be claimed by assessees and further held that Sandvik Asia ruling was misquoted. Post this judgement, a SC division bench in Gujarat Fluoro Chemicals [TS-165-SC-2014] had set aside the Gujarat HC ruling, which had allowed interest on delayed TDS refund alongwith further payment of running interest @ 9% on interest accrued. However, SC in Tata Chemicals Ltd. [TS-147-SC-2014] allowed Sec. 244A interest to TDS deductor as 'compensation' for excess deduction of tax at source made pursuant to order u/s 195.
The Sirpur Paper Mills Ltd. [TS-359-HC-2014(AP)]
No comments:
Post a Comment