Revenue directed to refund Rs. 44.60 lakhs within two weeks, assessee can pursue statutory remedies for balance

Delhi HC directed revenue to refund Rs. 44.60 lakhs to assessee within two weeks, representing the crystallized refund amount. The court disposed of the writ petition allowing assessee to pursue statutory remedies for claiming interest and balance refund amount of Rs. 1.40 lakhs. Revenue had computed refundable amount as Rs. 44.60 lakhs against assessee's claim of Rs. 46 lakhs. Court clarified that its orders would not prejudice assessee's right to seek statutory remedies for outstanding amounts and interest claims.

---

---

Issues:
The issues involved in this case relate to the petitioner seeking a writ of mandamus for the refund of a substantial amount for Assessment Years 2010-11 and 2014-15, which was adjusted against a demand raised for Assessment Year 2015-16 without prior notice under the Income Tax Act, 1961.

Judgment Details:

Issue 1: Refund Adjustment without Notice
The petitioner's grievance was that the refund due for Assessment Years 2010-11 and 2014-15, totaling approximately Rs. 46 lakhs, was adjusted against a demand for Assessment Year 2015-16 without issuing notice under the Income Tax Act, 1961. The petitioner had deposited 20% of the demand for 2015-16 and filed an appeal, but no formal application for stay was made. The court allowed the petitioner to file a formal application before the Assessing Officer (AO) and directed the AO to rule on the application within ten days.

Issue 2: Clarification of Order
The petitioner sought clarification of the order directing the AO to decide on the application for stay. The court reiterated the petitioner's claim for a refund of Rs. 46,42,955 for Assessment Years 2010-11 and 2014-15, adjusted against the demand for 2015-16. The petitioner requested the refund of the remaining amount, including the balance of the demand for 2015-16, without claiming interest if paid promptly.

Issue 3: Dispute Over Refund Amount
The respondents/revenue computed the refundable amount to be Rs. 44.60 lakhs, while the petitioner claimed Rs. 46 lakhs as per the writ petition prayers. The petitioner also requested interest, although the statutory rate was not specified in the initial claim. The respondents contested paying interest since the refund had been adjusted, leading to a dispute over the facts and the amount claimed as a refund.

Judgment Outcome:
The court disposed of the writ petition with directions for the respondents/revenue to remit the crystallized refund amount of Rs. 44.60 lakhs to the petitioner within two weeks. The petitioner was granted liberty to pursue statutory remedies for interest and the remaining refund, with previous orders not hindering such actions. The concerned authority was tasked with deciding on interest and the balance principal amount claimed by the petitioner in accordance with the law, leading to the closure of pending applications and cancellation of the fixed date for the matter.

---