2025 (5) TMI 446 - HC - Income Tax

Seeking Refund of Tax recovered - amounts against an outstanding demand pursuant to the assessment order which has been set aside has not been refunded as yet - HELD THAT - Although a specific prayer has not been made in the present petition regarding the Petitioner s grievance arising from attachment of his bank accounts which the learned counsel states still continues to be attached this court considers it apposite to further direct the concerned authorities to vacate the attachment in the event no further amounts are required to be recovered from the petitioner. We direct the concerned authorities to process the Petitioner s claim for refund alongwith applicable interest as expeditiously as possible and in any event within a period of eight weeks from date. In the event the concerned authorities are of the view that the petitioner is not entitled to the refund the said decision and the reasons for the same would be communicated to the petitioner. The petition is allowed in the aforesaid terms.

Summary

Summary:In the Delhi High Court matter before Hon'ble Justices Vibhu BakhrU and Tejas Karia, the petitioner sought a writ directing the Revenue Department to refund Rs. 5,06,436 recovered pursuant to an assessment order for AY 2020-21, which was later set aside on appeal. The petitioner's original declared income of Rs. 4,07,720/- was restored by the AO following the CIT(A)'s order dated 29.10.2024. Despite this, amounts were recovered via bank account attachment and adjustment of refunds from other years.The Court noted the Revenue's concession for time to refund and additionally directed vacation of the bank account attachment if no further recovery is warranted. The Court held: "We direct the concerned authorities to process the Petitioner's claim for refund alongwith applicable interest as expeditiously as possible and in any event within a period of eight weeks from date." If refund is denied, reasons must be communicated to the petitioner.The petition was allowed accordingly, emphasizing prompt refund and removal of coercive measures post-settlement of the disputed demand.