2022 (10) TMI 547 - HC - Income Tax

Refund the amount back to the petitioner - Reasons for non-crediting of refund is that assessee is not able to validate bank account on e-filing portal - HELD THAT - The material on record clearly indicate that the respondent is liable to refund the amount back to the petitioner together with applicable interest in accordance with law. Under these circumstances, the present petition deserves to be allowed by issuing necessary directions to the respondent to refund the amount together with applicable interest back to the petitioner in accordance with law. WP allowed. The respondent is directed to refund the amount together with applicable interest back to the petitioner in accordance with law.

Summary

Issues:
1. Refund of excess amount determined for AY 2020-21
2. Grant of interest under section 244A(1)
3. Any other reliefs deemed fit by the High Court

Refund of Excess Amount Determined for AY 2020-21:
The petitioner sought a writ or Order in the nature of Mandamus to direct the respondent to grant the refund as determined in the Intimation for AY 2020-21. Despite the respondent determining a refund of Rs.21,48,370 payable to the petitioner and subsequent requests for refund, the respondent did not take any steps to refund the amount. The respondent argued against the petition, claiming it lacked merit. The Court noted an earlier order directing the respondent to refund the amount, and subsequent communication from the respondent regarding the inability to credit the refund due to issues with the petitioner's overseas bank account. The Court found the respondent liable to refund the amount back to the petitioner with applicable interest in accordance with the law. The petition was allowed, and the respondent was directed to refund the amount along with interest. The petitioner was instructed to open a virtual bank account, and upon validation by the respondent, the refund was to be issued promptly.

Grant of Interest under Section 244A(1):
The petitioner also sought an Order directing the respondent to grant interest as stipulated under section 244A(1) until the date of the refund. The Court, after considering the contentions and circumstances of the case, concluded that the respondent was indeed obligated to refund the specified amount along with applicable interest. The Court allowed the petition and issued directions for the refund process, ensuring the interest was also included in the repayment.

Other Reliefs Deemed Fit by the High Court:
Apart from the specific reliefs sought regarding the refund and interest, the petitioner requested any other reliefs deemed fit by the High Court, including the costs of the writ petition. The Court, after evaluating the facts and submissions, found in favor of the petitioner on the main issue of refund and interest. No specific mention of additional reliefs was made in the judgment, indicating that the primary focus was on the refund determination and interest payment. The Court's decision primarily centered around the refund process and ensuring compliance with the legal provisions for interest payment, rather than addressing any further reliefs beyond the scope of the refund issue.