Court Orders Timely Tax Refund of Rs. 28 Crore with Interest; Warns of Consequences for Non-Compliance in Delays.

The HC directed the Central Processing Center to ensure the refund of Rs.28,10,97,082 is credited to the Petitioner's account by a specified date, with interest under Section 244A of the IT Act for delays. Non-compliance would lead to issuing a physical cheque or pay order. The matter is adjourned to 13th February 2024 for further proceedings. The court emphasized timely refunds to prevent unnecessary interest payments from public funds and warned of willful disobedience consequences for non-compliance.

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Issues involved:
1. Petition for refund and rectification of technical error in portal.
2. Delay in processing refund by the Income Tax Department.
3. Payment of interest to Assessee due to nonpayment of admitted refund.
4. Directive to ensure prompt issuance of refund.

Analysis:

1. The petition sought a direction for the grant of a refund of Rs.28,10,97,082 and deletion of a demand of Rs.1,20,05,43,648 due to a technical error in the portal. The Respondents acknowledged the error deletion but highlighted a delay in processing the refund. The Assessing Officer had determined the refund amount, but technical glitches at the Central Processing Center hindered further processing. The court emphasized the importance of promptly issuing refunds to avoid the loss of public money as interest to the Assessee.

2. The court expressed concern over the casual treatment of refund delays by the Income Tax Department, emphasizing that such delays result in the payment of interest to the Assessee from public funds, causing a loss to the nation. The court urged efforts to prevent the unnecessary payment of interest and ensure the timely issuance of refunds to taxpayers.

3. Given the significant delay since the Assessing Officer's order, the court directed the Central Processing Center to ensure the credited refund reaches the Petitioner's account by a specified date. Failure to comply would result in the issuance of a physical cheque or pay order to the Petitioner, including interest under Section 244A of the Income Tax Act up to the date of payment. The court warned that non-compliance would be considered willful disobedience of the order.

4. The matter was adjourned to 13th February 2024 for further proceedings, emphasizing the court's expectation of prompt action to resolve the refund issue and prevent any further delays in the process.

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