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 release interest to the Delhi Development Authority (DDA) under Section 244(1A) and Section 244A of the Income-tax Act. The Court clarified that the DDA was entitled to interest for the assessment years 1988-89 under Section 244(1A) and for subsequent years under Section 244A, rejecting the Department's argument regarding the nature of the refunded amounts. The Court confirmed that the interest calculation must align with the provisions of the Income-tax Act as interpreted by the High Court.