{
  "id": 11033972,
  "title": "Senior citizen wrongly paid tax on Rs 25.42L interest; ITAT orders Rs 9.91L refund",
  "url": "https://urgent.news/2026/09/30/senior-citizen-wrongly-paid-tax-on-rs-25-42l-interest-itat-orders-rs",
  "topic": "culture",
  "section": "Culture",
  "published": "2026-09-30T21:25:00.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/senior-citizen-invested-rs-3-crore-in-tax-free-bonds-but-mistakenly-paid-tax-on-rs-25-42-lakh-interest-earnings-why-itat-delhi-ordered-rs-9-91-lakh-refund/articleshow/134595737.cms"
  },
  "original_language": "en",
  "account": null,
  "summary": "A senior citizen in Gurugram successfully challenged the Income Tax Appellate Tribunal (ITAT) Delhi's ruling that he had erroneously paid tax on interest earned from tax-free bonds. The individual, who invested Rs 3 crore in government tax-free bonds in 2013, mistakenly treated Rs 25.42 lakh in interest as taxable income when filing his return for AY 2022-23. As a result, he paid Rs 9.91 lakh in income tax, which he was not required to pay since the investments were tax-free by definition. After realizing the error and realizing he could not file a rectification application within the deadline, the senior citizen approached the JAO and filed a rectification application under Section 154. However, the JAO rejected the request, citing the Supreme Court's decision in Goetze (India) Ltd. v. CIT. The senior citizen then appealed to the ITAT Delhi, which ruled in his favor. The tribunal held that the ruling in Goetze (India) Ltd. did not apply to the present case and referred to the Kapil Dev Nikhanj case, which stated that appellate authorities have the power to entertain rectification requests. The ITAT Delhi directed the assessing officer to treat the interest from the IIFCL and REC tax-free bonds as exempt income under Section 10(15)(iv)(h) and ordered a refund of Rs 9.91 lakh, including interest, to the senior citizen.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}