2021 (9) TMI 1001 - HC - Income Tax

Refund with interest u/s 244A - adjustment of refund towards pre-deposit - HELD THAT - Writ petitioner will do the needful qua refund qua third respondent within a fortnight from today i.e., by 17.09.2021. The third respondent shall complete the exercise of refund as captured in paragraph 4 of the counter affidavit (extracted and reproduced supra elsewhere in this order) as expeditiously as possible and in any event within 12 weeks therefrom i.e., on or before 10.12.2021. The above draws the curtains on the captioned writ petitions and this Court places on record its appreciation for the fair stand taken by the learned Revenue counsel.

Summary

Issues:
Refund with interest under Section 244A of the Income Tax Act, 1961; Request for adjustment of refund towards pre-deposit in an appeal; Premature filing of writ petition without applying for refund on TRACES portal; Impleadment of Centralized Processing Cell for Tax Deducted at Source (TDS) for refund with interest.

Analysis:
The judgment pertains to a case involving the refund with interest under Section 244A of the Income Tax Act, 1961. The petitioner sought a refund with interest and requested an adjustment of the refund towards a pre-deposit in an appeal. The court noted the request for adjustment and the acceptance of notice by the Senior Standing Counsel on behalf of the respondents. There was a discussion regarding the premature filing of the writ petition without applying for a refund on the TRACES portal. The court highlighted the need for the petitioner to follow the proper procedure for refund and interest calculation before approaching the court prematurely. The Revenue counsel pointed out that the refund pertained to Tax Deducted at Source (TDS) and was with the Centralized Processing Cell. The court decided to implead the Deputy Director of Income Tax, Centralized Processing Cell, as the third respondent to ensure the refund process is expedited. The court ordered the writ petitioner to take necessary steps for the refund with the third respondent within a fortnight and directed the third respondent to complete the refund process expeditiously within 12 weeks.

The judgment concludes by appreciating the fair stand taken by the Revenue counsel and disposing of the writ petitions without imposing any costs. The issues of refund with interest, adjustment of refund towards pre-deposit, premature filing of the writ petition, and impleadment of the Centralized Processing Cell for TDS refund with interest were addressed comprehensively in the judgment. The court's decision aimed to ensure a fair and timely resolution of the refund issue while emphasizing the importance of following proper procedures in such matters.