04-08-2010, 02:50 PM
Thanks for the reply dear.
A company files refund application alongwith its income tax return. Tax department remained silent for six months. After six months company files an appeal and refund is ordered for a material amount i.e. 50 million.
Please tell me whether any provision exists (other than section 171) in income tax law to recover the damages/delayed refund charges or markup from tax department becasue it is fact that the company has suffered from loss of profits which can be earned if the refund was ordered on timely basis within 60 days.
I think if there is failure at tax department end, then they should bear the markup as a natural justice.
A company files refund application alongwith its income tax return. Tax department remained silent for six months. After six months company files an appeal and refund is ordered for a material amount i.e. 50 million.
Please tell me whether any provision exists (other than section 171) in income tax law to recover the damages/delayed refund charges or markup from tax department becasue it is fact that the company has suffered from loss of profits which can be earned if the refund was ordered on timely basis within 60 days.
I think if there is failure at tax department end, then they should bear the markup as a natural justice.
