9911796707
TMI Blog2025 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... espondents to pay the amount of interest at the rate of 6% per annum as per the calculation provided to us amounting to Rs.22,04,104/- for twenty months from 01/06/2022 to 31/01/2024 considering the entire month on amount of Rs. 2,20,41,042/- within a period of three months from the date of receipt of copy of this order. X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 2,20,41,042/- was sent to OLTAS for outward transmission to refund banker on 06.04.2023 and would be credited in the bank account of the petitioner. 11. Learned advocate Mr. Ajgaonkar for the petitioner further submitted that inspite of resolution of the grievance intimated to the petitioner on 17.04.2023, the petitioner did not receive the refund. The petitioner thereafter preferred an appeal for not getting refund inspite of reply dated 17.04.2023 stating that the petitioner was not getting refund for past one year. However, the appeal was closed on 21.08.2023 intimating that Jurisdictional Assessing Officer has uploaded manual order under section 5 (2) on 26.07.2022 determining refund of Rs. 2,20,41,042/- and the said refund was paid on 28.04.2023 to tax payer's account number ending with 0088. It was submitted by learned advocate Mr.Ajgaonkar that the petitioner had already closed the said account with the HDFC bank and new account was validated twice in the year 2022 as well as in March, 2023 and inspite thereof, it was wrongly stated in the closing remark at page 51 of the paper book that refund was paid in the account number ending with 0088 on 28.04.2023 which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the closing remarks dated 21.08.2023 to explain in detail as to why the amount of refund was not paid to the petitioner in time and the same was paid only after the notice was issued by this court in the month of December, 2023 so as to determine the question of payment of interest for the delayed payment of refund by the respondents. Stand over to 24th February, 2025." 2. In compliance of the aforesaid order, learned Senior Standing Counsel Mr. Karan G. Sanghani for the respondents has placed on record the additional affidavit-in-reply on behalf of respondent no.1. The same is ordered to be taken on record. 3. Referring to the additional affidavit-in-reply, it was submitted by learned Senior Standing Counsel Mr. Karan Sanghani that Jurisdictional Assessing Officer passed and uploaded the manual order in the ITBA system on 12/05/2022 which was accounted on CPC 26/07/2022 with refund of Rs. 2,20,41,042/- and the refund was issued by the CPC and therefore nothing is pending before the Jurisdictional Assessing Officer. 4. It was further submitted that the petitioner did not validate the bank account with the CPC as such the refund could not be paid to the petitioner. It was th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed in an appeal. In the present fact scenario, the deductor/assessee had paid taxes pursuant to a special order passed by the assessing officer/Income Tax Officer. In the appeal filed against the said order the assessee has succeeded and a direction is issued by the appellate authority to refund the tax paid. The amount paid by the resident/ deductor was retained by the Government till a direction was issued by the appellate authority to refund the same. When the said amount is refunded it should carry interest in the matter of course. As held by the Courts while awarding interest, it is a kind of compensation of use and retention 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/ d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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