March 2023

Section 264 – Revision – amount had been taxed twice – powers under section 264 of the Act were not limited to correcting any errors committed by the authorities but also extended to errors committed by the assessee.

By Ajay R. Singh, Advocate

Reading Time 6 mins

22 Interglobe Enterprises Pvt Ltd vs. Pr. Commissioner of Income Tax Delhi -4 & Ors. [Writ Petition (L) NO. 11708 OF 2021 & CM APP. 36194 OF 2021 Date of order: 20th January, 2023, (Delhi) (HC) ] Section 264 – Revision - amount had been taxed twice - powers under section 264 of the Act were not limited to correcting any errors committed by the authorities but also extended to errors committed by the assessee. The controversy, in the present case, relates to the liability to pay tax on the interest received on income tax refund pertaining to the A.Ys. 2009-10 and 2010-11. The assessee had credited interest amounting to Rs. 1,61,38,250 in its books of account for the F.Y. 2013-14. This amount included a sum of Rs. 1,29,01,031 as interest on income tax refund for the A.Y. 2009-10 and Rs. 22,66,836 as interest on income tax refund for the A.Y. 2010-11. Thus, an aggregate amount of Rs. 1,51,67,867, on account of interest on income tax refund(s), was included as income for the F.Y. 2013-14. The assessee included the said amount in its return of income for the A.Y. 2014-15 and paid tax on the same. The assessee’s return for the A.Y. 2014-15 was picked up for scrutiny and an assessment order dated 28th October, 2016 was passed under section 143(3) of the Act. There is no dispute that income, as assessed, included the said amou

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