9911796707
TMI Blog2025 (5) TMI 1591X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule returnable forthwith. Learned Senior Standing Counsel Ms. Maithili D. Mehta waives service of notice of rule for the Respondent. With the consent of learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is quite brief. 3. The brief facts of the case are as follows: 3.1 The Respondent has passed the order with reference to letter dated 28.12.2023, not entertaining the request for payment of interest Rs. 4,39,010/- on delayed payment of refund amount of Rs. 36,51,389/- under Section 244A of the Income Tax Act, 1961 which is arising from the provisions of Direct Tax Vivad Se Vishwas Act, 2020. 3.2 The Petitioner is a trust and duly filed its return of income under Section 139 of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby, the Petitioner preferred an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] via Form No. 35 dated 18.04.2013, which came to be dismissed. Thereafter, an appeal was filed before the Income Tax Appellate Tribunal (ITAT), Surat Bench. Meanwhile, the Petitioner also challenged the imposition of penalty under Section 271 (1) (c) before the CIT(A), but subsequently withdrew the said appeal on 10.12.2020 upon opting for resolution under the Direct Tax Vivad Se Vishwas Act, 2020 (DTVSVA). In furtherance thereof, the Petitioner submitted a declaration in Form No. 1 dated 10.06.2020 and an undertaking in Form No. 2, indicating that the appeal was pending before ITAT Surat in ITA No. 1652/Ahd/2015. 3.7 The designated Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nates, agents and successors in office; to grant the interest of Rs. 4,39,010/- on refund amount of Rs. 36,51,389/- u/s 244A of the Income Tax Act, 1961. (b) Pending the admission, hearing and final disposal of this petition, this Hon'ble Court be pleased to direct Respondents to grant the interest of Rs. 4,39,010/-on refund amount of Rs. 36,51,389/- u/s 244A of the Income Tax Act, 1961. (c) This Hon'ble Court may be pleased to grant such order and further ad-interim relief as may be deemed fit by this Hon'ble Court, in the interest of justice." 5. Mr. Sudhir M. Mehta, learned Counsel for the Petitioner has submitted that the Respondent had erred in not granting interest on the amount of refund which was paid belatedly. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility is less than the tax paid. As per the old section an assessee was entitled for payment of interest on the amount of taxes refunded pursuant to an order passed under the Act, including the order passed in an appeal. In the present fact scenario, the deductor/assessee had paid taxes pursuant to a special order passed by the assessing officer/Income Tax Officer. In the appeal filed against the said order the assessee has succeeded and a direction is issued by the appellate authority to refund the tax paid. The amount paid by the resident/ deductor was retained by the Government till a direction was issued by the appellate authority to refund the same. When the said amount is refunded it should carry interest in the matter of course. As h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such monies. The State having received the money without right, and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest. Whenever money has been received by a party which ex ae quo et bono ought to be refunded, the right to interest follows, as a matter of course." 7.2 The aforesaid decision in the case of Tata Chemicals Limited (Supra) has been followed in several decisions cited by the learned Counsel for the Petitioner. Further, in a recent decision of this Court in the case of M/s. Sahil Total Infratech Pvt. Ltd. Vs. Assistant Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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