M/S K LAKSHMANYA AND COMPANY PARTNER vs THE STATE OF KARNATAKA COMMISSIONER OF INCOME TAX — C.A. No. 4335/2012

Case Summary The Supreme Court allowed the appeals of K Lakshmanya and Company, holding that the assessee is entitled to interest under Section 244(A) of the Income Tax Act when a refund arises due to the Settlement Commission's partial waiver of interest. The Court ruled that once the Commission exercises its discretionary power to waive interest (pursuant to CBDT circulars under Section 119), a concomitant right automatically springs into being for the assessee to claim refund interest, making the interest refund a statutory obligation rather than discretionary. This case analysis is maintained by casestatus.in based on publicly available court records.