2022 (11) TMI 136 - HC - Income Tax

Refund of tax paid/deposited by the Petitioner along with applicable interest as per law - HELD THAT - This Court is of the view that as the order of the Tribunal has not been assailed in appeal u/s 260A it has attained finality and the inaction of the Respondents in granting the refund is in contravention of Sections 240 and 244A of the Act. Consequently, the present writ petition is disposed of with a direction to the AO to pass the appeal effect order of the order passed by the Tribunal for the AY 2013-14 within twelve weeks of receipt of this order as well as grant, if any, the consequential refund of tax paid/deposited by the Petitioner along with applicable interest in accordance with law.

Summary

Issues involved:
1. Direction sought for passing appeal effect order by Respondents
2. Grant of refund of tax paid along with interest as per law
3. Contravention of Section 240 and Section 244A of the Income Tax Act, 1961

Analysis:

Issue 1: Direction sought for passing appeal effect order by Respondents
The petitioner filed a writ petition seeking directions for the Respondents to pass the appeal effect order of the order passed by the Income Tax Appellate Tribunal (the 'Tribunal') for the Assessment Year 2013-14. The Tribunal had deleted certain additions/disallowances made by Respondent No.1, entitling the Petitioner to a total income tax refund of Rs.23,18,71,243. The counsel for the Petitioner highlighted that despite the Tribunal's order not being challenged further in appeal under Section 260A of the Income Tax Act, the refund had not been issued to the Petitioner.

Issue 2: Grant of refund of tax paid along with interest as per law
The Petitioner became entitled to a significant income tax refund, including interest, following the Tribunal's order. However, the Respondents failed to grant the refund, which led to the filing of the writ petition. The Court observed that the inaction of the Respondents in granting the refund was in contravention of Sections 240 and 244A of the Income Tax Act, 1961.

Issue 3: Contravention of Section 240 and Section 244A of the Income Tax Act, 1961
The Court noted that since the order of the Tribunal had not been challenged further in appeal under Section 260A of the Act, it had attained finality. Consequently, the Court directed the Assessing Officer to pass the appeal effect order of the Tribunal's decision within twelve weeks and to grant the consequential refund of tax paid by the Petitioner along with applicable interest in accordance with the law.

In conclusion, the judgment addressed the issues raised by the Petitioner regarding the refund of income tax following the Tribunal's decision for the Assessment Year 2013-14. The Court directed the Respondents to comply with the law and grant the refund to the Petitioner as per the Tribunal's order, emphasizing the importance of adhering to statutory provisions under the Income Tax Act, 1961.