Tax Department Must Refund Excess Deposits During Appeals When Final Assessment Shows Lower Tax Liability Under Articles 14, 265

HC ruled that tax authorities cannot retain excess deposits made during appellate proceedings when final assessment is lower than deposited amount. Such retention constitutes unjust enrichment and violates Articles 14 and 265 of Constitution. Authorities directed to refund excess amounts for AY 2013-14 and 2014-15 with 9% interest from 09.01.2021 until payment. Additionally ordered Rs. 2,00,000 as costs for wrongful retention over four years. Both refund and costs payable within six weeks of order receipt. Court emphasized that retention of excess deposits beyond actual tax liability violates constitutional principles of equality and taxation authority. .....

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