Kar HC holds interest on tax refund u/s 244A taxable in yr of receipt

The Hon’ble Karnataka HC has confirmed addition holding that interest received on tax refund u/s 244A taxable in year of receipt, notwithstanding pendency of appeal; Rejects assessee’s argument that interest income an unascertained liability & not taxable since Revenue’s appeal against ITAT’s order granting refund was pending before HC; Holds that once assessee receives income by way of interest, liability to pay tax under the Income Tax Act arises; HC clarifies no case of double taxation arises in case Revenue later succeeds before HC, as while refunding amount, assessee can take into account amount paid by way of tax : Karnataka HC

To read complete text of judgement, click here Venkatesh Dutt

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