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Requisite Checks for Appeals - RespondentInheritance Tax row - A golden opportunity to end 32-years long Policy Paralysis on DTCThe Heat is on: Preserving Earth's Climate in the Face of Global WarmingVAT - Timeline for frefund must be followed mandatorily while recovering dues under Delhi VAT Act: SCIndia, Australia to work closely for collaborative projectsCX - All the information was available to department in 2003 itself, therefore, SCN issued four years after gathering information is not sustainable and is highly barred by limitation: HCPowerful voices of amazing women leaders resonated at UN HqsCX - Clearance to sister concern for captive consumption - Department cannot compel assessee to perpetuate the illegality and in such circumstances the whole exercise was revenue neutral: HC75 International visitors from 23 countries arrive to watch world's largest elections unfoldCentre asks States to improve organ donation frequencyCus - Revenue involved in the appeal filed by Commissioner is far below the threshold monetary limit fixed by the CBEC, therefore, department cannot proceed with this appeal - Appeal stands disposed of: HCPM says NO to religion-based reservationCus - Export of non-basmati rice - Since the objective of Central Government in imposing ban with immediate effect was to avert a food crisis in the country, a strict compliance of exemption conditions would further the said intent of the Notification(s): HCAdani Port to develop port in PhilippinesCX - Appellant should not be left without an opportunity to put-forth his case on merits, particularly, when matter was decided during period of Covid-19 pandemic and also appellant contends that no opportunity of virtual hearing was granted by adjudicating authority: HCKiller floods - 228 killed in Kenya + 78 in BrazilI-T - Grant of registration u/s 12A can't be denied by invoking Sec 13(1)(b), as provisions of section 13 would be attracted only at time of assessment and not at time of grant of registration: ITATFlight cancellation case: Qantas accepts USD 66 mn penaltyI-T- Joint ownership in two residential properties at the time of sale of the original asset does not disentitle the assessee to claim of deduction under section 54F of the Act: ITATIsrael shuts down Al Jazeera; seizes broadcast equipmentI-T - If assessee was prevented from production of evidences because of its non-availability or delay in its retrieval coupled with ongoing several reassessment, assessee should be allowed to adduce additional evidence: ITATIndia to wait for Canadian Police inputs on arrest of men accused of killing Sikh separatist: JaishankarI-T- If assessee is otherwise found eligible, CIT(E) should grant provisional approval to assessee under Clause (iii) to First Proviso to section 80G(5): ITATLabour Party candidate Sadiq Khan wins record third term as London MayorI-T - Donation made to trust which is otherwise not approved during relevant period as per CBDT Circular, is not eligible for deduction u/s 35(1): ITATGovt scraps ban on export of onionI-T- Assessee could have filed application in Form No.10AB on or before 30.09.2022, which assessee failed to do : ITATUS Nurse convicted of killing 17 patients - 700 yrs of jail-term awardedI-T- AO erred in making addition for completed/non abated assessment as no incriminating material found during course of search :ITAT
 
CBDT pays Rs 43000 Cr interest on refund in six years; It is violative of Constitutional provisions: CAG Report

By TIOL News Service

NEW DELHI, DEC 25, 2015: ON the issue of interest payment on refund the CAG has been stubborn in its views and it has done it by putting it in its latest report. The CAG has been of the view that the CBDT does not have the authority to withdraw money from the Consolidated Fund of India under this head but it has been doing so without the Parliamentary nod and in contravention of the Constitutional provisions.

The Report notes that the total outgo under this head was Rs 5000 Cr last fiscal. In the last six ficals, the total sum as interests on reund payments was to the tune of about Rs 43000 Crore.

The CAG Report underlines that since no budget provision for such payment was made, any payment made under this head was not proper and this amounts to violation of Article 114(3) of the Constitution.

The CAG Report points out that since the payment of interest on refund of excess tax paid amounts to a charge on the Consolidated Fund of India, it is to be construed as an expenditure and the Ministry of Finance should take proper approval of the Parliament in this regard.

Also See related article Interest on Tax Refund - Sansad shunned; Perhaps it's time to create 'Refund Fund of India'!

The national auditor is also of the view that the mere provision of interest on refunds in the I-T Act cannot be a valid excuse to override the constitutional requirement.


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Sub: intrest on delayed refunds

Government is earning intrest on the excess money paid by the assessee and it has no authority to retain the excess money paid by the tax payer and the intrest earned.

Posted by suresh hanamshet
 

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