Court Orders Refund of Overcharged Tax Amount with Interest to Petitioner, Collection Stayed During Appeal.

The court directed the respondents to refund the excess amount of Rs.19,04,552/- to the petitioner, along with applicable interest, within six weeks. The decision came after the petitioner challenged the excessive recovery beyond 20% of the demand during the pending appeal. The Principal Commissioner of Income Tax-3, Chennai, had already stayed further collection after acknowledging the over-collection. The Writ Petition was disposed of without any costs.

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Issues:
The petitioner challenged the impugned proceedings to quash and direct the refund of excessively recovered amount over 20%.

Adverse Assessment Order:
The petitioner received an adverse assessment order on 26.03.2015 and appealed on 21.04.2015 before the Commissioner of Income Tax (Appeals), Chennai, numbered as ITA No.184/CIT(A)-15/2015-16.

Delay in Passing Order:
Despite being heard, no order was passed in ITA.No.184/CIT(A)-15/2015-16, and the case was transferred to the National Faceless Appeal Centre, New Delhi, pending renumbering and hearing.

Refund Adjustment:
The petitioner was entitled to a refund of Rs.28,78,728/- for various assessment years, adjusted on different dates. The petitioner contended that only 20% of the demand could be collected pending appeal, amounting to Rs.9,73,728/-.

Respondents' Communication:
The respondents stated in a communication dated 11.01.2022 that the Principal Commissioner of Income Tax-3, Chennai stayed further collection due to CPC collecting more than 20% of the demand through refund adjustment.

Court's Decision:
The court directed the respondents to refund the excess amount of Rs.19,04,552/- to the petitioner and instructed the refund, along with applicable interest, within six weeks. The Writ Petition was disposed of with no costs incurred.

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