2023 (8) TMI 157 - HC - Income Tax

Rectification of mistake - Refund partially remitted - Amount refundable has been wrongly adjusted towards a non-existent demand - HELD THAT - Given the aforesaid position, according to us, the best way forward would be to direct the concerned authority to deal with the rectification application at the earliest. Respondent says that he cannot have an objection to a direction being issued in that behalf. It is ordered accordingly. The concerned authority will dispose of the rectification application dated 06.06.2022 at the earliest, though not later than six (6) weeks from the date of receipt of a copy of the judgment rendered today.

Summary

Issues involved:
The issues involved in the judgment are the partial refund for Assessment Year 2010-11 and the incorrect adjustment of refundable amount for Assessment Year 2020-21.

Summary:

Partial Refund for Assessment Year 2010-11:
The petitioner claimed a refund of Rs.58,06,170/- along with statutory interest for Assessment Year (AY) 2010-11, but only Rs.32,12,880/- was refunded. The petitioner sought a refund of Rs.30,08,240/-, which includes the remaining amount yet to be refunded after the partial refund and the incorrect adjustment made for AY 2020-21.

Incorrect Adjustment for Assessment Year 2020-21:
The refundable amount for AY 2020-21, Rs.4,14,950/-, was wrongly adjusted towards a non-existent demand for AY 2010-11, as per the petitioner's claim.

The petitioner had made several representations regarding the refund issue, including communications on various dates and a rectification application dated 06.06.2022, which had not been addressed by the concerned officer.

The court directed the concerned authority to promptly address the rectification application dated 06.06.2022. The authority was instructed to dispose of the application within six weeks from the date of receipt of the judgment. If a refund was found to be due, it was mandated to be remitted within three weeks of the authority's order.

The writ petition was disposed of based on the above terms, and the parties were instructed to act upon the digitally signed copy of the judgment.