Withholding of Refund of Rs. 54 Crores by Income Tax Dept: Delhi HC directs to Process Refund to KRBL with Interest [Read Order]

In a major relief to M/s KRBL Limited, a division bench of the Delhi High Court has ordered the income tax department to process the refund of Rs. 54 Crores along with interest. The orders were passed for two assessment years.

The petitioner contended that the Income Tax Appellate Tribunal vide order dated 09th May, 2022, decided all issues in favour of the Petitioner and the entire additions were deleted, thus allowing the appeal of the Petitioner and dismissing the appeal of the Respondents. It was further stated that the Petitioner is now entitled to a refund of remaining taxes paid under protest amounting to Rs.16,45,98,588/- along with applicable interest under Sections 244A/244A(1A) of the Income Tax Act, 1961.

On behalf of the income tax department, it was contended that the Revenue is in the process of filing an appeal against the order of the Income Tax Appellate Tribunal.

After hearing arguments from both parties, a bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that “the Respondents-Revenue have had sufficient time to file an appeal against the order of the Income Tax Appellate Tribunal. In any event, in accordance with the mandate of law, the appeal effect order has to be passed within three months of passing the appeal order.”

Keeping in view the limited prayer sought in the present writ petition, the same is disposed of with a direction to the Respondents-Revenue to consider the issue of refund of Rs.16,45,98,588/- and Rs.38,35,24,882/- along with up-to-date interest to the Petitioner and the issue of interest of Rs.1,14,76,268/- and Rs.1,26,30,272after giving effect to the order of CIT(A) for AY 2013-14 as additional amount due to the Petitioner.

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