[Breaking] ITR Refund of Rs. 5.37cr not Paid to Microsoft Corp India for 8 Years: Delhi HC orders Refund with Interest [Read Order]

In a recent decision in the case of Microsoft India, the Delhi High Court has ordered an income tax refund of Rs. 5.37 crore with interest which was delayed for 8 years.

‘Not paying the refundable amount to an assessee for eight years is shocking and is an issue which should have pricked the conscience of the officers at the helm of affairs’ said Justice Dinesh Mehta and Justice Vinod Kumar.

The petition was filed by Microsoft Corporation India Private Limited seeking income tax refund of Rs. 5,37,77,310/- which was held with the income tax department for 8 years.

Adv. Nageswar Rao, appearing for the Microsoft submitted that the Assessing officer was simply waiting for refund adjustment challan. He states that the department has taken more than eight years to carry out the ministerial work and the amount has not been paid even till today.

According to Microsoft, not just the refund amount, they are entitled to interest under Section 244A(1A) of the Income Tax Act, 1961.

The department, however, said that the Assessing Officer has assured him that the necessary payment shall be made along with applicable interest within a period of 12 weeks.

The court said that the department was callous towards the petitioner's grievance as they did not pay any heed to the petitioner’s grievance.

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‘It is painful to learn that in spite of the writ petition, even till today, the petitioner has not been paid the amount’ said the court.

The department’s submission requesting to grant 12 weeks was rejected by the court stating that is an ‘unreasonable prayer’. It is taking not only citizens but also the high court for granted.

The court ordered to pay the entire amount (Rs.5,37,77,310/-) along with applicable interest, including interest given under Section 244A(1A) of the Income Tax Act, 1961 latest by 15.02.2026.

The bench warned the Deputy Commissioner of Income Tax that if there is any delay in the payment of the refund, the officer shall have to pay costs of Rs.1,00,000/- to the petitioner, which shall be paid by him personally i.e. from his own pocket.

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