Facts of the Case
- The
Petitioner, KRBL Limited, succeeded before the ITAT vide order
dated 09 May 2022.
- ITAT
deleted all additions and allowed the appeal of the Petitioner.
- Consequently,
the Petitioner became entitled to refund of ₹38,35,24,882/- along with
interest.
- Despite repeated representations dated 20 May 2022 and 11 July 2022, the Respondents failed to pass the appeal effect order or release the refund
Issues Involved
- Whether
the Revenue can delay passing of appeal effect order after ITAT decision.
- Whether
the Petitioner is entitled to refund along with statutory interest under
the Income Tax Act.
- Whether non-grant of refund violates Article 265 of the Constitution.
Petitioner’s Arguments
- ITAT
has already decided the matter in favour of the Petitioner; hence refund
is legally due.
- Delay
in issuing refund is illegal and violates Sections 237 & 240 of
the Act.
- Petitioner
is entitled to interest under Sections 244A & 244A(1A).
- Non-payment of refund amounts to violation of Article 265 (no tax shall be collected except by authority of law).
Respondent’s Arguments
- Revenue submitted that it is in the process of filing an appeal against the ITAT order.
Court’s Findings / Order
- The
Court held that the Revenue had sufficient time to file an appeal.
- As
per law, appeal effect order must be passed within three months of
appellate order.
- The
writ petition was disposed of with directions:
- To
issue refund of ₹38,35,24,882/- along with up-to-date interest.
- To
grant additional interest of ₹1,26,30,272/- after giving effect to CIT(A)
order.
- The
Court directed compliance within six weeks.
- Rights and contentions of parties were kept open.
Important Clarification
- Filing
or proposed filing of appeal by Revenue does not justify delay in
granting refund.
- Statutory
timelines for passing appeal effect orders are mandatory.
- Refund along with interest is a legal right, not discretionary.
Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/MMH28102022CW149742022_194600.pdf
Disclaimer
This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.
0 Comments
Leave a Comment