Non-Implementation of Order passed in May granting Refund is ‘Strange’ and Loss to Exchequer: Delhi HC [Read Order]

Non-Implementation - Refund - Strange - Delhi HC - TAXSCAN

The Delhi High Court in an interim order held that the action of the Revenue delaying the implementation of refund order passed in the month of May is “strange” and the same is causing loss to the exchequer.

The Petitioner-assessee, All India Personality Enhancement and Cultural Center for Scholars (AIPECCS) Society approached the High Court contending that there is a delay in granting income tax refund on the part of the income tax department.

The Revenue contended that the money could not be refunded to the petitioner as the petitioner’s bank account is not validated. However, learned counsel for the petitioner has drawn our attention to the petitioner’s letter dated 04th June 2022, wherein the petitioner had given its banking details to the Deputy Commissioner of Income Tax (Exemption).

The petitioner relied on the letter dated 04th June, 2022, wherein the petitioner had given its banking details to the Deputy Commissioner of Income Tax (Exemption).

A division bench comprising Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that “It is strange that the order dated 26th May 2022, has not been implemented till date. The interest on the refund continues to run at the cost of the exchequer.”

Listing the matter to 10th November 2022, the High Court directed the Principal Commissioner of Income Tax, CPC, Bangalore, to join the proceedings by way of online video link on the next date of hearing.

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