Facts of the Case

The petitioner, Mr. Anil Kumar Goel, approached the Delhi High Court seeking issuance of a writ of mandamus directing the Income Tax Department to issue consequential refunds in compliance with the order dated 08.02.2017 passed by the Commissioner of Income Tax (Appeals) for Assessment Year 2007–08, along with refunds adjusted for other assessment years and statutory interest.

The petitioner also sought grant of interest under Section 244A of the Income-tax Act, 1961, recomputation of refund along with interest, and compensation for alleged harassment and hardship caused due to inaction of the Department.

It was contended that refunds arising for four assessment years had not been released and that as on the date of filing of the writ petition, the total refund due, including interest, aggregated to ₹9,98,236.80. A detailed chart reflecting refund amounts, dates of adjustment, period for which interest was claimed, and total refund payable was placed on record.

Issues Involved

Whether the Income Tax Department was obliged to release the pending refunds along with applicable statutory interest within a reasonable time, and whether directions were required to ensure payment and disclosure of computation of the refund amount.

Petitioner’s Arguments

The petitioner submitted that despite the appellate order passed by the CIT(A) in February 2017, the consequential refunds had not been released for several years. It was argued that the continued withholding of refunds and adjustment against other years without proper release of interest was arbitrary and contrary to statutory mandate. The petitioner relied on the computation chart to demonstrate the total refund due as on the date of filing of the writ petition.

Respondents’ Arguments

The Revenue, through its counsel, placed before the Court certain documents indicating that the Department had worked out the amount payable to the petitioner. It was submitted that the refund amount along with applicable interest would be released to the petitioner within a period of eight weeks.

Court Order / Findings

The Delhi High Court recorded the statement made on behalf of the Revenue that the amount due and payable to the petitioner, including interest, had been computed and would be released within an outer limit of eight weeks. The Court directed that the breakup of the refund amount shall also be furnished to the petitioner within the same time frame.

The Court further observed that in case the petitioner was of the view that the payment made by the Department was short, the petitioner would be at liberty to make a representation to the Assessing Officer, who shall consider the same in accordance with law and communicate a decision within four weeks thereafter.

Important Clarification

The Court clarified that if, even after consideration of the representation, the petitioner remained aggrieved, liberty would remain with the petitioner to seek revival of the writ petition along with the order passed by the Assessing Officer.

Final Outcome

The writ petition was disposed of. The Delhi High Court directed the Income Tax Department to release the refund amount along with applicable interest to the petitioner within an outer limit of eight weeks, furnish a detailed breakup of the amount, and consider any representation for shortfall in payment in accordance with law, with liberty to the petitioner to seek revival in case of continued grievance.

Link to download order- https://www.mytaxexpert.co.in/uploads/1769681973_MR.ANILKUMARGOELVsPR.COMMISSIONEROFINCOMETAXDELHI10ANDORS..pdf

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