TDS Deposited In Wrong PAN By Employer: Gauhati HC Denies Interest U/S 244A Of IT Act, Says It Applies Only When Refund Is Delayed By Dept
Live LawThe Gauhati High Court has made it clear that interest on refund under Section 244A of the Income Tax Act, 1961 applies only to those cases where refund is delayed by the Income Tax Department. Justice Devashis Baruah thus declined interest to a construction contractor, whose TDS was deposited in the wrong PAN number by the Defence Ministry's Border Roads Organisation. The bench also noted that even if the amount was deposited in the correct PAN number, Petitioner was not entitled to any refunds, rendering the provision inapplicable to the case. In absence of such materials, the question of granting interest as claimed do not arise.” It added, “Section 244 A of the Act of 1961 cannot be made applicable to the present facts as the said provision appears to duly apply in respect to cases where the Department had delayed the payment of refunds.” Even though BRO is a statutory entity, it is separate from the Income Tax Department.
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