Telangana HC says Vivad Se Vishwas Settlement Does Not Bar All Subsequent Refund Interest

The Telangana High Court held that an assessee who settles a tax dispute under the Direct Tax Vivad Se Vishwas Act, 2020, is not automatically barred from claiming statutory interest for a period during which the Department continues to retain an excess amount even after settlement. The Court distinguished interest under Section 132B(4), payable on seized money after the initial 120-day period until completion of regular assessment, from interest under Section 244A, which operates from completion of assessment until actual refund. While the DTVSV Act excludes interest under Section 244A on excess payments covered by the settlement, the exclusion does not extend to a subsequent period of delay in releasing the refund after settlement has attained finality.