UNION OF INDIA TR.DIR.OF I.T. vs M/S TATA CHEMICALS LTD.

The Supreme Court addressed the issue of the revenue's liability to pay interest on tax refunds under Section 244A of the Income Tax Act, 1961, specifically in relation to refunds due under Section 240. The Court held that the revenue is indeed responsible for paying interest on such refunds, affirming the applicability of Section 244A for assessment years post-01.04.1989. The judgment clarifies the interpretation of tax refund provisions, ensuring that taxpayers receive interest on delayed refunds as mandated by the statute.