TMI Blog2024 (1) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... the IBAN was provided but not the SWIFT code. After the assessment order was issued, since the refund was not made, the petitioner raised grievances through the CPC. The grievance raised on 22.04.2022 is of particular relevance. The petitioner specifically called upon the respondents to enable the petitioner to update the bank account details of its foreign bank account by inputting the SWIFT code and IBAN. In response, the respondents called upon the petitioner to retry. Significantly, the respondent did not inform the petitioner that only a bank account with an Indian bank is eligible for receipt of refund. In any event, the press release dated 24.07.2017 of the CBDT enables a non-resident to provide a foreign bank account for purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de within a maximum period of two months from the date of receipt of a copy of this order. - Hon'ble Mr. Justice Senthilkumar Ramamoorthy For the Petitioner : Mr.G.Baskar For Respondents : Mr.B.Ramana Kumar, Senior Standing Counsel (Tax) Mr.Prabhu Mukunth Arun Kumar Junior Standing Counsel (Tax) ORDER Originally, the writ petitioner sought a mandamus for the grant of refund with interest thereon in respect of the Assessment Year 2021-22. After the writ petition was filed, the refund was made on 05.10.2023. Consequently, the petitioner sought an amendment of the prayer by confining it to payment of interest. 2. The petitioner is a Limited Liability Company (LLC) incorporated in the United States of America (USA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Direct Taxes (the CBDT), learned counsel points out that a non-resident is entitled to provide details of a foreign bank account in his return of income for issuance of refund. In the case at hand, learned counsel points out that the income tax return contained the details of the foreign bank account of the petitioner along with the IBAN. If the respondents required the SWIFT code, learned counsel submits that the same could have been requested for at that juncture. Even otherwise, he submits that the respondents could have enabled the petitioner to input the SWIFT code in the portal. Since the delay in making the refund is entirely attributable to the respondents, learned counsel submits that the petitioner is entitled to interest not onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry, 2023 and that such bank account was validated only on 07.07.2023. By making allowance for a reasonable period of three months from such date, he submits that no interest is payable on the amount already refunded. 6. As regards the judgments relied upon by learned counsel for the petitioner, he submits that in all those cases, the assessee was not at fault. When the reasons for delay are attributable to the assessee, he submits that the statute provides for the exclusion of the the period of delay by the assessee. Even with regard to the foreign bank account indicated in the return of income, learned counsel submits that the SWIFT code was not provided. Without the SWIFT code, learned counsel submits that no refund can be made to a fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period from the date of such application to the date on which the refund is granted;] (aa) where the refund is out of any tax paid under section 140A, such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period, from the date of furnishing of return of income or payment of tax, whichever is later, to the date on which the refund is granted: Provided that no interest under clause (a) or clause (aa) shall be payable, if the amount of refund is less than ten per cent of the tax as determined under sub-section (1) section 43 or on regular assessment;] (b)in any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest is not payable if the refund proceedings are delayed for reasons attributable to the assessee. This leads to the question whether the assessee was responsible for the delay. The assessee submitted its return of income in respect of the Assessment Year 2021-22 and provided information relating to an account with the Comerica Bank in the USA. The income tax return discloses that the IBAN was provided but not the SWIFT code. After the assessment order was issued, since the refund was not made, the petitioner raised grievances through the CPC. The grievance raised on 22.04.2022 is of particular relevance. The petitioner specifically called upon the respondents to enable the petitioner to update the bank account details of its foreign ban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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