IT Refund

Income tax paid (so refund) is not income, and interest received over that is taxable.........

Yes,, refer: madras_high_court_rules_that_income-tax_refund_is_a_debt_claim

Refund is a taxed income and cannot be retaxed.

We pay taxes from our income only.  If it is excess then it is refunded. So IT refund is part of income. Thats what i said.

Only intrest part is added to P& L account and is assessed under 'Income from other sources'... while basic refund amount is directly credited to capital account.......

Credited to tax provisions account......