Refund interest under Direct Tax Vivad Se Vishwas Act - court orders officer affidavits to explain delay; hearing adjourned.

Petition concerns entitlement to interest on a delayed tax refund payable under a final settlement order issued pursuant to the Direct Tax Vivad Se Vishwas scheme; respondents contend a statutory explanation excludes interest under the incometax interest provision. Court directed production of affidavits from the jurisdictional assessing officer and the officer who closed the appeal to explain why the refund was not paid earlier (including bankaccount validation and transfer of the case), so as to determine interest liability. Matter listed for further hearing on 24 February 2025; no final determination on interest made.

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Issues: (i) Whether the petitioner is entitled to interest on delayed payment of refund under the Direct Tax Vivad Se Vishwas Act, 2020 and/or Section 244A of the Income-tax Act, 1961.

Issue (i): Whether the petitioner is entitled to interest on the refund retained by the respondents from May 2022 or from October 2022 when the petitioner's bank account was validated on the portal.

Analysis: The Court recorded the petitioner's contention that the refund of Rs. 2,20,41,042/- was paid only after issuance of notice by this Court and that the petitioner had validated a new bank account on the portal in May and October 2022; the respondents contend that, by virtue of the Explanation to Section 7 of the DTVSV Act, 2020, interest as per Section 244A Income-tax Act may not be payable. The respondents sought time to place on record the jurisdictional Assessing Officer's order dated 26.07.2022 and affidavits explaining the delay and the portal/OLTAS transmission entries to determine entitlement to interest.

Conclusion: The question of the petitioner's entitlement to interest on delayed refund is not finally decided; the Court has directed the respondents to file supporting material and the matter is adjourned for further consideration on 24th February, 2025.

Final Conclusion: The Court did not make a final adjudication on the entitlement to interest; the matter remains pending for the respondents to place on record the assessing officer's order and affidavits explaining delay so that the issue can be finally determined.

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