2019 (9) TMI 612 - HC - Income Tax

Refund of TDS along with interest withheld - Petitioner company opened a virtual bank account - HELD THAT - Petitioner would submit that the status in the portal shows that the refund is processed but withheld. For procedural infractions, the petitioner company is facing harassment to avail the refund of TDS. On instructions Revenue submits that alternative arrangements are made to remit the refund either through RTGS/NEFT or by issuing a Cheque/Demand Draft to the petitioner-company. Writ petition stands disposed of directing the respondents to refund the amount of ₹ 1,33,30,196/-(Rupees One Crore Thirty Three Lakhs Thirty Thousand One Hundred and Ninety Six Only) to the petitioner along with interest to which it is entitled to, in an expedite manner.

Summary

Issues:
1. Refund of excess tax amount for assessment year 2015-2016 withheld by respondents.
2. Unavailability of cancelled cheque leaf for virtual bank account causing delay in refund process.
3. Alleged harassment faced by petitioner company in obtaining TDS refund.

Analysis:
The judgment pertains to a writ petition filed by a petitioner aggrieved by the inaction of the respondents in not refunding the amount of ?1,33,30,196 along with interest issued by way of an order dated 27.06.2017, relating to the assessment year 2015-2016. The petitioner, a company registered in the United States, had a service agreement with AVO India, which deducted taxes [TDS] before remitting service charges to the company. The assessment for the year 2015-16 resulted in a refund of ?1.2 crores to the petitioner. The petitioner provided details of a virtual bank account with Kotak Mahindra Bank for the refund, but the respondent requested a cancelled cheque leaf which was not available for virtual accounts, leading to the delay in processing the refund.

The petitioner claimed that despite showing the refund as processed, it was being withheld due to procedural issues, causing harassment to the company. The respondent, through their counsel, informed the court that alternative arrangements were made to remit the refund through RTGS/NEFT or by issuing a Cheque/Demand Draft to the petitioner-company. The court, considering the submissions, disposed of the writ petition by directing the respondents to refund the amount of ?1,33,30,196 to the petitioner along with the entitled interest in an expedited manner. The judgment emphasized the need for prompt resolution of the refund issue faced by the petitioner company, thereby bringing the legal proceedings to a close.