In a major relief to KRBL Limited, the Delhi High Court has directed the income tax department to pay an amount of Rs. 34 crores to KRBL Limited within six weeks along with Interest
The petitioner, assessee, an Indian rice processing and exporting company, and the world’s largest rice miller approached the High Court seeking a direction to the income tax department to issue refund of Rs.24,03,89,270/- along with up-to-date interest to the Petitioner pursuant to appeal effect order dated 05th April, 2021 arising out of order of CIT(A) as well as pass appeal effect orderpursuant to order of the Income Tax Appellate Tribunal dated 09th May, 2022 and issue an additional refund of Rs.9,96,10,730/- along with up-to date interest.
The department contendedit is in the process of filing an appeal against the order of the ITAT.
Granting an interim relief to the assessee, Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that the Respondents-Revenue have had sufficient time to file an appeal against the order of the ITAT.
“In any event, in accordance with the mandate of law, the appeal effect order has to be passed within three months of passing of the appeal order.” The Court said.
Concluding the order, the Court ordered that the payments of refunds shall be made within the said period of six weeks andheld that “Keeping in view the limited relief sought in the present writ petition, the same is disposed of along with pending application with a direction to the Respondents-revenue to consider:- (i) Issue of refund of Rs.24,03,89,270/- along with up-to-date interest to the Petitioner pursuant to appeal effect order dated 05th April, 2021 arising out of order of CIT(A); and(ii) Appeal effect order pursuant to order of the ITAT dated 09th May, 2022 and issue additional refund of Rs. 9,96,10,730/- along with upto-date interest, in accordance with law.”
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