Petitioner wins refund case over delayed income tax credit, court orders compliance with appeal decision.

The petitioner sought a refund of income tax for the assessment year 2017-18 following the death of her husband. Despite a favorable appeal decision directing the respondent to grant the TDS credit, the petitioner did not receive the refund. The High Court criticized the respondent for the delay and ordered compliance with the CIT (Appeals) decision within 12 weeks, including interest and all consequential reliefs.

---

---

Issues:
1. Refund of income tax due to the petitioner for assessment year 2017-18.
2. Discrepancy in TDS credit claimed by the petitioner.
3. Non-issuance of refund despite favorable appeal decision.

Issue 1: Refund of income tax due to the petitioner for assessment year 2017-18
The petitioner sought direction for the refund of income tax due for the assessment year 2017-18. The petitioner's husband passed away in 2016, and she filed a return of income for that year, including interest on fixed deposits in her late husband's name. The respondent found a discrepancy in the TDS claimed by the petitioner, demanding a short payment of tax. The CIT (Appeals) later allowed the appeal, directing the respondent to verify and grant the TDS credit. However, despite the favorable decision, the petitioner did not receive any refund or communication, leading to the filing of a grievance and subsequent petition for refund.

Issue 2: Discrepancy in TDS credit claimed by the petitioner
The respondent contended that the TDS credit claimed by the petitioner was unsustainable as it was in the late husband's name. The respondent argued that the TDS details were only available on the ITBA system and required the petitioner to register as a legal heir, file a return of income, and then claim the TDS. The respondent rejected the petitioner's grievance application, stating that the credit of TDS could only be granted on the ITBA system if available with the PAN of the assessee. However, the CIT (Appeals) found the petitioner's contention valid, as the income of the late husband was reflected in the total income statement and Form 26AS, making the TDS credit of Rs. 81,353 allowable to the petitioner.

Issue 3: Non-issuance of refund despite favorable appeal decision
The High Court acknowledged the petitioner's compliance with tax obligations, offering the interest income from her late husband in her return, paying the tax, and reflecting it in Form 26AS as directed by the CIT (Appeals). The Court criticized the respondent for not granting the refund despite clear evidence and the CIT (Appeals) order. The Court emphasized that the petitioner should have received the refund, either through the system or physically, as the Commissioner was convinced of the validity of her claim. The Court allowed the petition, directing the department to comply with the CIT (Appeals) order within 12 weeks, including interest and all consequential reliefs.

---