Income Tax Dept agrees to Refund Rs. 190 Crores with Interest to Vedanta: Delhi HC sets Compliance Date for Oct 30th

The Income Tax (I-T) department has made a significant decision to refund an amount of Rs 190 crore, along with interest, to the mining conglomerate Vedanta pertaining to the assessment year (AY) 2021-22.

The development came to light after a hearing at the Delhi High Court, presided over by Justice Rajiv Shakdher. During the proceedings, counsel Abhishek Maratha, representing the revenue department, officially confirmed that the refund, inclusive of appropriate interest, will be disbursed to Vedanta. The court has subsequently scheduled further action for compliance with this order, setting the date for October 30.

Vedanta initiated this legal process in August when it filed a petition with the high court. In this petition, the company asserted that the revenue department had not yet refunded an amount exceeding Rs 190.2 crore for the assessment year 2021-22. Vedanta's plea urged the court to issue directives to the revenue department, instructing them to offset this refund against an outstanding demand that the department had previously raised for the assessment year 2011-12, reported ET on October 6.

This recent decision by the Income Tax department to refund the substantial amount to Vedanta represents a significant development in the ongoing legal dispute between the company and the revenue department. The decision to refund, along with the interest component, aligns with the court's considerations, as demonstrated during the proceedings before Justice Rajiv Shakdher. The upcoming compliance date in October will mark the culmination of this particular aspect of the case.

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