Relief to MUFG Bank: Delhi HC directs Income Tax Dept to pay Income Tax Refund Rs. 93.4 Crores with Interest [Read Order]

In a major relief to MUFG Bank, a division bench of the Delhi High Court has directed the income tax department to process the refund of Rs. 93,42,03,834/-to the MUFG Bank along with interest in accordance with the Income Tax Appellate Tribunal order.

Justice Manmohan and Justice Manmeet Pritam Singh Arora was considering a petition by the Bank seekingconsequential refund of Rs.58,32,30,038/,Rs.11,14,54,207/-, Rs.13,89,08,987/-, Rs.8,11,44,800/- and Rs.1,94,65,800/- for the Assessment Years 2009-10, 1996-97, 2016-17, 2001-02 and 1991-92 with interest under Section 244A(1) of the Income Tax Act, 1961 and additional interest under section 244(1A) of the Act arguing that the departmentfailed to pass orders giving effect to the orders of the ITAT and the High Court without giving any reason due to which the legitimate refunds available to the Petitioner are lying blocked.

Allowing the petition, the Court ordered that “Keeping in view the limited relief sought in the present writ petitions, the same are disposed of along with pending applications with directions to the Respondents to pass the appeal effect order and make payment of refunds pursuant to ITAT orders dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021 as well as the order of the ITAT dated 13th September, 2019 and the order of the Calcutta HighCourt dated 07th August, 2019 within six weeks in accordance with law. However, the rights and contentions of all the parties are left open.”

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