New Delhi, Sept. 29 -- A senior citizen who mistakenly paid Rs.9.91 lakh in excess tax on interest from tax-free bonds has secured relief from the Income Tax Appellate Tribunal (ITAT), after the assessing officer initially refused to correct the error.

The case concerns Ajay Kumar Bakaya, a resident senior citizen from Gurugram, who had invested Rs.3 crore in tax-free bonds and had regularly reported the interest as exempt income in his income-tax returns, Upstox reported.

The ITAT has now directed the assessing officer to treat the interest as exempt and grant him a Rs.9,91,370 refund, along with interest as admissible under law.

In February 2013, Bakaya invested Rs.3 crore in tax-free bonds:

Interest earned from both bonds is exempt...