Refund & Interest u/s 240 & 244A Must Be Paid Till Actual Date of Payment: Orissa HC [Read Order]
The High Court of Orissa passed a Rectification Order to include interest on refund amount. The interest was added to the refund of deletion in additions to the income in AY 2009-10.
![Refund & Interest u/s 240 & 244A Must Be Paid Till Actual Date of Payment: Orissa HC [Read Order]](https://images.taxscan.in/h-upload/2026/02/16/2125517-orissa-high-court-refund-interest-actual-date-of-payment-refund-till-payment-date-tax-refund-interest-ruling-orissa-high-court-tax-refund-ruling-taxscan.webp "Refund & Interest u/s 240 & 244A Must Be Paid Till Actual Date of Payment: Orissa HC [Read Order]")
The Orissa High Court at Cuttack directed that the interest on refund as per Sections 240 and 244A must be paid till the actual date of payment. Also Read:Interest u/s 220(2) Unsustainable Where Income Tax Demand Arose Only Through Subsequent Rectification Order: ITAT [Read Order] The Assessment Order was dated 28.12.2016 which had been passed under Section 153 of the IT Act....
The Orissa High Court at Cuttack directed that the interest on refund as per Sections 240 and 244A must be paid till the actual date of payment.
The Assessment Order was dated 28.12.2016 which had been passed under Section 153 of the IT Act. The Commissioner of Income Tax (Appeals) [CIT(A)] allowed an appeal on 14.06.2018 and deleted the additions made to the income by the Assessing Officer.
On 02.02.2026, the petitioner, Diamond Plaza Pvt. Ltd., through submissions made by their counsel preferred appeal against the assessment order which entitled them for not only the refund under Section 240 but also the interest as per Section 244A of the Income Tax Act (IT Act).
The same had been prepared in the writ petition to the High Court under Articles 226 and 227 of the Constitution of India. A Rectification Order was passed on 11.02.2026 under Sections 154 and 251 pertaining to the Assessment Year 2009-10.
The High Court of Orissa observed that authorities had taken steps to release the amount of refund along with interest and disposed of the matter, provided that the interest is computed till the date of actual payment to the petitioner but within two weeks.
The High Court bench, comprising Chief Justice Harish Tandon and Justice M.S. Raman, disposed of the writ petition and left room for Interlocutory Application(s), if any, from the date of order, as no purpose was served by keeping the matter pending. Directions had been meted out in favour of the petitioner.
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