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2019 (5) TMI 197 - HC - Income TaxPetition for refund - refund is admittedly payable to the Petitioner - demand u/s 201(1) - error of TDS mismatch in the computer system - HELD THAT:- Due to human error, the Petitioner had shown payment to HSBC under old as well as new TAN giving rise to TDS mismatch. AO himself agrees that this is an error and the demand should be deleted from the system. Despite this communication from the AO, the computer system of the department has not taken steps to delete the demand. As a result of which, the Petitioner’s sizable tax refund in access of ₹ 21 Crores is held up. Department cannot withhold the refund of the Petitioner. Firstly, the computer system cannot override the factual aspects. If the refund is payable, whether the computer systems accepts or not, is of no consequence. In the present case, according to the department itself, the error had to be rectified. Had this be done timely, there would have been no delay in releasing the Petitioner’s refund. Petition is disposed of the Respondent shall release the refund of the Petitioner arising out of the assessment for the assessment years 2007-2008 to 2010-2011 with statutory interest latest by 15/05/2019. Department shall take steps to rectify the error of TDS mismatch in the computer system pertaining to the Petitioner. This may be done as expeditiously as possible. However, the refund of the Petitioner shall not be linked with the rectification of the error.
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