2025 (8) TMI 1442 - HC - Income Tax

Revenue to pay s.244A interest on 2009-10 refund by 31 July 2025; AO to decide 2008-09 rectification within eight weeks

HC directed the revenue to calculate and pay interest under s.244A on the refund for A.Y.2009-10 up to the actual payment date of 31 July 2025 and remit ... Interest on the refund u/s 244A - Petitioner submitted that after the present Writ Petition was filed, for A.Y.2009- 10, refund has been issued to the Petitioner on 31st July 2025. He however submitted that interest on this refund has been calculated only upto 8th February 2024 and which is not in consonance with the provisions of Section 244A. HELD THAT:- Since these are the limited reliefs sought in the above Writ Petition, we pass the following order:- (a) For A.Y.2009-10, the Department is directed to calculate the interest on the refund amount granted to the Petitioner upto 31st July 2025 u/s 244A of the IT Act and pay over the same to the Petitioner within a period of 4 weeks from today. (b) For A.Y.2008-09, we direct the AO to hear the Rectification Application filed by the Petitioner as expeditiously as possible, and in any event, within a period of 8 weeks from today. Whilst passing his Rectification Order the AO shall also take into account the payment of interest under Section 244A to be calculated till the date of payment. The above Writ Petition is disposed of in the aforesaid terms. Petition sought directions for payment of refunds and interest under Section 244A of the Income Tax Act, 1961 for A.Y.2008-09 (Rs. 2,82,73,980) and A.Y.2009-10 (Rs. 3,96,51,440). For A.Y.2009-10 the refund was paid on 31 July 2025, but interest was computed only up to 8 February 2024. The court directed: 'For A.Y.2009-10, the Department is directed to calculate the interest on the refund amount granted to the Petitioner upto 31st July 2025 under Section 244A of the IT Act and pay over the same to the Petitioner within a period of 4 weeks from today.' For A.Y.2008-09 only Rs.56 lakhs was refunded; petitioner filed a rectification under Section 154 for short payment. The court ordered: 'For A.Y.2008-09, we direct the Assessing Officer to hear the Rectification Application filed by the Petitioner as expeditiously as possible, and in any event, within a period of 8 weeks from today. Whilst passing his Rectification Order the Assessing Officer shall also take into account the payment of interest under Section 244A to be calculated till the date of payment.' Writ disposed; no order as to costs; compliance listed for 22 September 2025.