Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

August 2026

Refund — Section 244A — Return of income — Intimation issued u/s. 143(1) in 2019 — Refund determined along with interest — Interest upto the date of intimation under Section 143(1) — Refund paid only in 2023 — Assessee’s request to grant interest till the date of payment of refund to the assessee — Rejection by the AO — The AO does not have jurisdiction to decide the question of exclusion of period and deny interest — Delay due to system failure — Cannot be held against the assessee — Once refund determined in the proceedings – Interest runs till the date of payment.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 7 mins

25. Bedmutha Industries Limited v. ACIT

TS-917-HC-2026(Bom.)

A. Y. 2017-18: Date of order 15/06/2026

S. 244A of ITA 1961

Refund — Section 244A — Return of income — Intimation issued u/s. 143(1) in 2019 — Refund determined along with interest — Interest upto the date of intimation under Section 143(1) — Refund paid only in 2023 — Assessee’s request to grant interest till the date of payment of refund to the assessee — Rejection by the AO — The AO does not have jurisdiction to decide the question of exclusion of period and deny interest — Delay due to system failure — Cannot be held against the assessee — Once refund determined in the proceedings – Interest runs till the date of payment.

The Assessee filed its return of income for A. Y. 2017-18 on 29/10/2017 claiming a refund of Rs.1,60,47,550. Subsequently, the return of income was revised on 31/01/2019 once again claiming the refund. The return was processed and intimation under Section 143(1) of the Income-tax Act, 1961, was issued on 14/11/2019 determining the refund along with interest under Section 244A. The interest was determined at Rs.25,67,600 upto the date of intimation.

Download PDF

You May Also Like

Order giving effect to CIT(A) Order — Order not passed within time limit as provided under Section 153 — Validity and effect of — Order passed by the CIT(A) with direction to re-characterise receipts and apply beneficial tax rate after opportunity of being heard — Order giving effect to CIT(A) Order not passed within statutory time limit provided u/s. 153 — Order passed beyond the time limit — Original assessment does not survive — Return of income to be treated as accepted.

Search and seizure — Assessment of third person — Notice for reassessment — Meaning of period of six or ten assessment years from “relevant assessment year” for which assessment can be made — How to compute “Six years immediately preceding assessment year relevant to previous year in which search is conducted” — Ten assessment years to be reckoned from end of assessment year pertaining to previous year in which search was conducted — Distinct from preceding year spoken of in case of six relevant assessment years — Date of search falling during F. Y. 2024-25 — A. Y. 2025-26 would be first assessment year and A. Y. 2016-17 would be tenth assessment year — Notice issued for A. Y. 2015-16 falls beyond period of ten years prescribed — Notice issued for A. Y. 2015-16 barred by limitation and accordingly invalid.