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TMI Blog2025 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... . Bhaumik Dholariya for the petitioner and learned Senior Standing Counsel Mr. Karan G Sanghani for the respondents. 2. At the outset learned advocate Mr. Aditya Ajgaonkar submitted that pursuant to the notice issued by this Court on 19.12.2023, the petitioner has received refund of Rs. 2,20,41,042/- through ECS on 25.01.2024. 3. It was submitted that the petitioner is also entitled to interest for delayed payment of refund which the petitioner was eligible pursuant to Form-5 issued being the order for full and final settlement of tax arrear under section 5 (2) read with section 6 of the Direct Tax Vivad Se Vishwas Act, 2020 dated 07.12.2021. It was submitted that the petitioner received the outstanding refund after almost two years a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer as ITR/Rectification right was transferred. 9. The petitioner thereafter raised grievances on 30.12.2022, 05.01.2023 and 06.01.2023 whereby the petitioner's grievance was resolved and the grievance was closed on portal without any resolution directing the petitioner to approach the Jurisdictional Assessing Officer. 10. The petitioner thereafter once again validated the account with the Union Bank of India on portal on 28.02.2023. The petitioner thereafter raised another grievance on 14.03.2023 and the same was also resolved stating that the amount of refund 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. Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the petitioner is entitled to the interest on the amount retained by the respondents since May, 2022 or at-least from October, 2022 when the bank account of the petitioner is validated on portal. 12. In support of his submissions, reliance was placed on the following decisions: 1) Decision of Hon'ble Apex Court in case of Union of India v. Tata Chemicals Ltd. reported in (2014) 43 taxmann.com 240(SC). 2) Decision of Hon'ble Delhi High Court in case of Mrs. Anjul v. Office of Principal Commissioner of Income Tax reported in (2022) 145 taxmann.com 140 (Delhi). 3) Decision of Hon'ble Bombay High Court in case of UPS Freight Services India (P) Ltd. v. Deputy Commissioner of Income Tax reported in (2023) 156 taxmann.com 489 (Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vily relied upon the decision of the Hon'ble Supreme Court in case of Union of India vs. Tata Chemicals Limited reported in (2014) 363 ITR 658 SC. 10. Having heard learned counsel for the respective parties, this Court requested both the sides to give calculation of the interest to be paid, if any, at the rate of 6% per annum to the petitioner by the respondent. Accordingly, learned Senior Standing Counsel Mr. Karan Sanghani has given computation of amount of interest payable at the rate of 6% per annum for twenty months from 01/06/2022 to 31/01/2024 amounting to Rs. 22,04,104/- on total amount of refund of Rs. 2,20,41,042/-. 11. Hon'ble Apex Court in case of Tata Chemicals Limited (supra) while considering the issue of payment of intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educted tax at source and deposited the same before remitting the amount payable to a non-resident/ foreign company. 38. Providing for payment of interest in case of refund of amounts paid as tax or deemed tax or advance tax is a method now statutorily adopted by fiscal legislation to ensure that the aforesaid amount of tax which has been duly paid in prescribed time and provisions in that behalf form part of the recovery machinery provided in a taxing Statute. Refund due and payable to the assessee is debt-owed and payable by the Revenue. The Government, therebeing no express statutory provision for payment of interest on the refund of excess amount/tax collected by the Revenue, cannot shrug off its apparent obligation to reimburse the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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