The Income Tax Officer, New Delhi vs Delhi Development Authority

The Supreme Court upheld the Delhi High Court's decision directing the Income-tax Department to calculate and pay interest to the Delhi Development Authority (DDA) under Section 244(1A) and Section 244A of the Income-tax Act for the assessment years 1987-88, 1988-89, and 1989-90. The Court clarified that the DDA was entitled to interest for the delayed refund, and the calculation of interest under Section 244(1) was incorrect. The ruling emphasized the proper interpretation of statutory provisions regarding interest on refunds, affirming the High Court's order for the Revenue to comply with the interest calculation as per the relevant sections of the Act.