2021 (8) TMI 514 - HC - Income Tax

Interest u/s 244A - HELD THAT - There is no particular dispute so far as due refunds to the petitioner from respondents and that for Assessment Years 2005-06 and 2007-08 refund has already been released and further that the matter with regard to the balance of refund is being resolved. It would be expedient that the balance amount of refund be released and paid to the petitioner along with resolution of petitioner s concern over payment of interest within a period of four weeks from today. In the meanwhile, the petitioner would communicate its banker to accept refund communication being sent by the Income Tax Department, since it appears that the petitioner s status and PAN have undergone change including its name.

Summary

Issues:
- Mandamus to release refund for Assessment Years 2004-05 and 2006-07
- Entitlement of petitioner to due refund amounts
- Resolution of concerns over interest under Section 244A of the Income Tax Act

Analysis:
The petitioner filed a writ petition seeking mandamus to the respondents for the release of refunds for Assessment Years 2004-05, 2005-06, 2006-07, and 2007-08 along with interest under Section 244A of the Income Tax Act. It was acknowledged during the hearing that there was no dispute regarding the petitioner's entitlement to the due refund amounts. The refunds for A.Ys. 2005-06 and 2007-08 had already been released, but the refunds for A.Ys. 2004-05 and 2006-07 were still pending. The respondents mentioned that a significant amount of the refund had already been sent to the petitioner's banker, but due to a mismatch in the bank account details, the refunds were not encashed. The petitioner's name had changed from a partnership firm to a company, leading to communication issues with the bank. The petitioner also expressed concerns over interest under Section 244A of the Income Tax Act for a two-year period.

The court noted that there was no dispute regarding the due refunds to the petitioner from the respondents. It was highlighted that the refunds for A.Ys. 2005-06 and 2007-08 had been released, and efforts were being made to resolve the matter concerning the balance of the refund. The court directed that the balance amount of the refund should be released and paid to the petitioner within four weeks. Additionally, the petitioner was instructed to communicate with its banker to ensure the acceptance of refund communication from the Income Tax Department, considering the changes in the petitioner's status and PAN details. The court disposed of the writ petition with these directions, emphasizing the timely release of the balance refund amount and the resolution of the petitioner's concerns over interest payment under Section 244A of the Income Tax Act.