The Delhi High Court directed the Income Tax Department to remit Rs 44.6 lakhs of refund already crystallized on deposit of 20% of demand.
The petitioner in the present matter is Syed Habeebur Rehman.
Abhishek Maratha, senior standing counsel, who appeared on behalf of the respondents/revenue, has returned with instructions, which indicate that the respondents/revenue have computed the amount refundable to the petitioner/assessee. It has been pointed out that Rs.44.60 lakhs have been computed as the amount which is refundable to the petitioner/assessee.
Pankaj Aggarwal, who appeared on behalf of the petitioner/assessee said that the amount claimed by way of refund is Rs.46 lakhs, as indicated in the prayers made in the writ petition. Furthermore, it was pointed out that the petitioner/assessee should also be granted interest.
In the instant writ action, counsel for the petitioner had clearly indicated that he would not be claiming interest if the amount is paid forthwith. The counsel for the revenue submitted that since the refund due was duly adjusted, interest cannot be paid.
A Division Bench of Justices Rajiv Shakdher and Girish Kathpalia observed that “The respondents/revenue will remit to the petitioner/assessee the amount of refund already crystallized [i.e., Rs.44.60 lakhs] within the next two (2) weeks. (ii) The petitioner will be at liberty to take recourse to a statutory remedy for payment of interest and the balance refund claimed by him. The order passed today or those passed on previous dates will not come in the way if such a remedy is taken recourse to.”
The Court further noted that the concerned authority will decide the matter concerning interest and the balance principal amount by the petitioned/assessee in accordance with the law.
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