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2023 (9) TMI 34 - BOMBAY HIGH COURTInterest u/s 244A on refund - refund amounts payable as reflected in Form No. 5 dated 15th June 2021 issued under the Direct Tax Vivad Se Vishwas (DTVSV) Act - HELD THAT:- In the present case, it is not in doubt that Petitioner was entitled to refund which ought to have been processed and paid latest by 31st July 2021. The amount as stated in the affidavit-in-reply has been paid only on 26th May 2023. Consequently, we are of the view that Petitioner is entitled to 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, however, put to notice that if such issues come in future, Court may even consider imposing cost to be recovered from the concerned officer's salary.
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