2024 (8) TMI 182 - HC - Income Tax

Interest on refunds - Delay in payment of interest by the department - as stated additional affidavit that the payment was received only on 8th June 2022 and, therefore, interest is payable up to and including 8th June 2022 - HELD THAT - Respondents-Revenue states he has received instructions to make a statement that the interest will be paid, but the department needs two months to make said payment. In our view, that is a most audacious request the department could make because this interest also is being paid in view of the delay by the department. As noted time and again in various matters, the officers do not realize that it is a public money that is used to pay interest and an effort should be made to save this public money. In the circumstances, interest shall be calculated upto 1st March 2024 and we direct Respondents to pay the balance interest on or before 1st March 2024. It is made clear that failure to pay will be viewed as a willful disobedience of the orders of this Court and the Court will not hesitate to initiate contempt proceedings.

Summary

The Bombay High Court ordered the Revenue to pay the balance interest of Rs.31,74,284 to the Petitioner by 1st March 2024, failing which contempt proceedings may be initiated. The Petition was disposed with liberty to apply.