Allahabad High Court: While deciding a case relating to Section 11BB of the Income Tax Act, 1961 which deals with interest on late payment of refunds, where Respondents alleged that petitioner has waived their right to claim the interest, the division bench of Rajes Kumar and Shashi Kant, JJ held that the payment of interest under the aforesaid provision is statutory and automatic, it is neither dependent on the claim of the party nor on the discretion of the authority concerned, hence, waiver of the interest by the party has no relevance. The Court further held that interest under the Section 11 BB of the Act becomes payable, if after expiry of three months from the receipt of application for refund, the amount claimed is still not refunded and officers concerned are not required to wait for instructions from any superior officers for grant of interest. Shree Balaji Aromatics Pvt Ltd., v Union of India, Civil Misc. Writ Petition No. 1062 of 2007, decided on 24th of April, 2014
To read the full judgment, click here
