Income Tax Refund Not Received by Assesee Even After 2 Months: Delhi HC directs Revenue to Refund after Inquiry by CBDT [Read Order]

The Delhi High Court in a recent case directed the Income Tax department to refund the amount which was not given to the assessee even after a delay of 2 months. The court was also directed to do as needed after an inquiry by the CBDT (Central Board of Direct Tax ).

Progressive Infotech Private Limited, the petitioner alleged that the refund for Assessment Years (AYs) 2020-21 and 2021-22 has not been remitted. It was submitted that they were entitled to a refund of Rs.3,38,87,284/- and claimed for a refund of Rs.2,22,95,140/-.

Mr Aseem Chawla,  senior standing counsel, who appeared on behalf of the respondents/revenue, stated that he has obtained instructions in the matter. A rectification order under Section 154 of the Income Tax Act, 1961 [“Act”] was passed on 08.02.2023, concerning AY 2020-21, whereby the refund amount of Rs.3,24,74,436/- has been determined.

It was found that a refund amounting to Rs.2,22,95,137/- has been determined in favour of the petitioner, under Section 143(3) of the Act, via order dated 27.12.2022. However, the aforementioned refund amount, as determined, has not been received by the petitioner.

“If this position is correct, certainly CBDT needs to inquire, as the determination qua AY 2021-22 was made as far back as 27.12.2022, whereas the determination about the refund qua AY 2020-21 was made on 08.02.2023, as the interest that has accrued in the meanwhile is a drain on the public exchequer.”, the division bench comprising Justice Rajiv Shakdher and Justice Tara Vitasta Ganju observed.

The Court directed the respondents/revenue to ensure that the refund amount is remitted to the petitioner within two (2) weeks. 

To Read the full text of the Order CLICK HERE

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