Vivad Se Vishwas settlement refund where account attachment caused excess payment; refund ordered after interest appropriation.

Payment under the Vivad Se Vishwas settlement was treated as excessive where the taxpayer's bank account was attached, so recovery of the excess paid is unjustified and must be refunded. The taxpayer remains liable to pay interest only on the admitted payable amount of Rs. 7,15,678 at 10%, calculated as Rs. 71,568, and that interest is to be appropriated before refunding the balance. The respondents are directed to refund the remaining amount of Rs. 9,32,536 within six weeks after appropriation of the interest.

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Issues:
The case involves the application of Vivad se Vishwas Act, 2020 (VSVS Act) for settling tax disputes, attachment of bank account by Income Tax Authorities, recovery of excess amount, and refund of the same.

Vivad se Vishwas Scheme Application:
The petitioner opted for the Vivad se Vishwas Scheme and filed Form 1 and 2 within the stipulated time frame. The respondent proceeded to attach the petitioner's account despite the scheme being in place, leading to a dispute over the recovery of the determined amount under the VSVS Act.

Income Tax Assessment and Appeal:
The petitioner had previously received an Impugned Assessment Order under the Income Tax Act for the Assessment Year 2012-2013. Subsequently, an appeal was filed by the petitioner against this order, coinciding with the announcement of the Vivad Se Vishwas Scheme, providing an opportunity to settle the dispute.

Attachment of Bank Account and Recovery:
The Income Tax Authorities attached the petitioner's bank account before the due date for payment under the VSVS Act, resulting in the appropriation of a significant amount from the account. Despite a balance remaining unpaid due to the attachment, the Income Tax Department collected a further sum after the due date, leading to a dispute over the excess recovery.

Judgment and Relief:
Considering the circumstances, the court found the recovery of the excess amount unjustified due to the attachment of the petitioner's account. The court directed the respondents to refund the excess amount promptly, ensuring the petitioner is not burdened with additional liability beyond what was rightfully due. The writ petition was allowed, and the respondents were instructed to refund the specified sum within a set timeframe.

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