9911796707
TMI Blog2023 (9) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... o interest on this amount from 1st August 2021 upto 26th May 2023 at the rate of 6% p.a. which is the rate prescribed u/s 244A of the Act. As the amount of interest is being paid out of public exchequer, the Chief Principal Commissioner in-charge of Circle 3 (2), Mumbai shall hold an enquiry as to why the order u/s. 5(2) read with 6 of the DTVSV Act was not passed till 21st June 2022 and why the refund amount was not paid until 26th May 2023, identify where the fault was and may take such steps as available in law including recovering the interest paid to Petitioner from the erring officer (s). Petitioner has also prayed for cost. Since we have awarded simple interest at 6% p.a. we are not granting any cost in this case. Respondents, are, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(2) read with Section 6 of the DTVSV Act, 2020. Notwithstanding the above, Respondent No. 1 has passed the order giving effect only on 21st June 2022, almost one year later. Despite that refund was not issued and respondents have driven Petitioner to approach this Court. 4. An affidavit-in-reply of one Uday Shankar (DCIT) currently holding the post as ACIT Central Circle 3(2), Bombay affirmed on 5th July 2023 is filed in which it is mentioned Petitioner's refund has been issued and credited to the account of Petitioner on 26th May 2023 as per feed received from the State Bank of India. Except a bald statement in the affidavit that delay in issuing refund has been attributable to some technical issues, there is nothing substantial in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court should grant at least the rate of interest which is provided for in Section 244A of the Act. 7. It will be useful to reproduce paragraph 2 of the circular 11/2016 (F.No.279/MISC./M-140/2015-ITJ] dated 26.4.2016 that Mr Gandhi tendered. It reads as under: 2. The issue of eligibility for interest on refund of excess TDS to a tax deductor has been a subject matter of controversy and litigation. The Hon'ble Supreme Court of India in the case of Tata Chemicals Limited, Civil Appeal No. 6301 of 2011 vide order dated 26.2.2014, held that Refund due and payable to the assessee is debt-owed and payable by the Revenue. The Government, there being no express statutory provision for payment of interest on the refund of excess amount/tax colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion of the money collected unauthorizedly by the Department. When the collection is illegal, there is corresponding obligation on the revenue to refund such amount with interest in as much as they have retained and enjoyed the money deposited. Even the Department has understood the object behind insertion of Section 244A, as that, an assessee is entitled to payment of interest for money remaining with the Government which would be refunded. There is no reason to restrict the same to an assessee only without extending the similar benefit to a resident/deductor who has deducted tax at source and deposited the same before remitting the amount payable to a non-resident/foreign company. 38. Providing for payment of interest in case of refund o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... August 2021 upto 26th May 2023 at the rate of 6% p.a. which is the rate prescribed under Section 244A of the Act. 10. As the amount of interest is being paid out of public exchequer, the Chief Principal Commissioner in-charge of Circle 3 (2), Mumbai shall hold an enquiry as to why the order u/s. 5(2) read with 6 of the DTVSV Act was not passed till 21st June 2022 and why the refund amount was not paid until 26th May 2023, identify where the fault was and may take such steps as available in law including recovering the interest paid to Petitioner from the erring officer (s). 11. Petitioner has also prayed for cost. Since we have awarded simple interest at 6% p.a. we are not granting any cost in this case. Respondents, are, however, put to n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
