2022 (4) TMI 744 - HC - Income Tax

Non disposing of the rectification applications filed by the Petitioner and consequentially grant refund arising there from along with applicable interest under Section 244A - petitioner states respondents have failed to process rectification applications filed by the petitioner without any reason or cause - HELD THAT - Issue notice. Keeping in view the limited prayer sought in the present writ petition, respondent No.1 is directed to decide the rectification applications for Assessment Years 2005-06, 2006-07, 2008-09, 2009-10, 2012-13, 2014-15, 2017-18, 2006-07 (FBT) and 2007-08 (FBT) in accordance with law within twelve weeks. Refund, if any, along with applicable interest under Section 244A of the Act shall be issued within the said period.

Summary

Issues:
Petition seeking direction for processing rectification applications for multiple Assessment Years and granting refund.

Analysis:
The petitioner filed a petition seeking direction for the respondents to process rectification applications for various Assessment Years and grant a refund of ?45.60 crore along with applicable interest under Section 244A of the Income Tax Act, 1961. The petitioner claimed that the respondents had failed to process the rectification applications without providing any valid reason. The court issued notice to the respondents, and upon acceptance of notice by the respondents' counsel, directed respondent No.1 to decide on the rectification applications for the mentioned Assessment Years within twelve weeks. The court further ordered that any refund due, along with applicable interest under Section 244A of the Act, should be issued within the stipulated twelve-week period. Consequently, with the given direction, the writ petition was disposed of.

This judgment highlights the importance of timely processing rectification applications and granting refunds in accordance with the law. It emphasizes the obligation of the tax authorities to address such applications promptly and efficiently. The court's directive for a specific timeline for the decision on rectification applications and the issuance of refunds underscores the significance of adherence to statutory timelines and the rights of taxpayers to receive due refunds within a reasonable period.