No Justification for Withholding Income Tax Refund: Madras HC Directs Rs. 92 Lakh Payout with Interest to Taxpayer [Read Order]
The Madras High Court directed the Income Tax Department to consider a taxpayer's representation for a pending refund of Rs. 92 lakh along with applicable interest, emphasizing that there was no justification for withholding the amount despite multiple representations.
![No Justification for Withholding Income Tax Refund: Madras HC Directs Rs. 92 Lakh Payout with Interest to Taxpayer [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/income-tax-refund-site-img.jpg "No Justification for Withholding Income Tax Refund: Madras HC Directs Rs. 92 Lakh Payout with Interest to Taxpayer [Read Order]")
The Madras High Court has directed the Deputy Commissioner of Income Tax to consider and dispose of a representation submitted by the petitioner for a pending tax refund of Rs. 92 lakh along with applicable interest under Section 244A of the Income Tax Act. Jan De Nul Dredging India Private Limited, (petitioner) represented by its Authorized Signatory, filed a writ petition under Article...
The Madras High Court has directed the Deputy Commissioner of Income Tax to consider and dispose of a representation submitted by the petitioner for a pending tax refund of Rs. 92 lakh along with applicable interest under Section 244A of the Income Tax Act.
Jan De Nul Dredging India Private Limited, (petitioner) represented by its Authorized Signatory, filed a writ petition under Article 226 of the Constitution of India. The petitioner sought a Writ of Mandamus to direct the respondent, (the Deputy Commissioner of Income Tax) to process the refund.
The petitioner made multiple representations to process the refund, including the representation which was recently made by the petitioner dated 07.08.2024. The petitioner submitted an assessment order dated 31.03.2015 which was passed under Section 143(3) of the Income Tax Act.
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The petitioner also submitted that the order determined a refund of Rs. 5,70,74,511, with an additional interest of Rs. 1,62,66,235 under Section 244A, totaling Rs. 7,33,40,747.
The petitioner received only Rs. 6,41,36,523, leaving a balance of Rs. 92,04,224 unpaid. Despite several representations, including the latest representation on 07.08.2024, the respondent had not processed the remaining refund.
The petitioner’s counsel contended that multiple representations had been made earlier, none of which were considered by the respondent. The counsel requested the court to direct the respondent to address the representation dated 07.08.2024.
The counsel for the respondent argued that the refund claim pertained to 2015, and the representation dated 07.08.2024 was belatedly filed. The counsel requested the court to pass appropriate orders.
A bench comprising Justice Krishnan Ramasamy observed that the petitioner had already received Rs. 6,41,36,523 and was entitled to the balance refund of Rs. 92,04,224, which remained unpaid.
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The court observed that the respondent had not considered the petitioner’s representations. The court also observed that including the representation dated 07.08.2024 was not considered and observed that the respondents did not provide no justification for withholding the refund.
The court directed the respondent to consider and dispose of the petitioner’s representation dated 07.08.2024 on its own merits and in accordance with the law, within 12 weeks from the receipt of the court’s order.
The writ petition was disposed of and connected petitions were also closed.
To Read the full text of the Order CLICK HERE
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