Statutory interest on delayed tax refunds: authorities directed to process the refund claim and pay interest promptly.

Petitioner sought direction for processing of a tax refund claim and payment of statutory interest under the Income-tax Act; the authorities conceded no legal bar to processing. The legal prescription affirmed is that where a refund claim exists and no impediment is shown, authorities must process the claim and pay up-to-date statutory interest for delay; the remedy was impleaded as a direction to process and disburse interest within a specified period. The operative effect is mandatory administrative compliance to adjudicate the refund claim and remit statutory interest expeditiously, with a time-bound directive provided in the instance.

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Issues: Whether the petitioner is entitled to direction for processing of its tax refund claim along with statutory interest under Section 244A of the Income-tax Act, 1961.

Analysis: The Court considered the petition seeking a writ directing the respondent authorities to process the petitioner's refund claim and to grant up-to-date statutory interest under Section 244A of the Income-tax Act, 1961. The Revenue conceded that there was no impediment to processing the refund claim in accordance with law. Having regard to the statutory entitlement to interest on delayed refunds under Section 244A and the absence of any legal bar to processing, the Court directed the concerned authorities to process the claim and pay interest in accordance with law within a specified time frame.

Conclusion: The petition is allowed; the authorities are directed to process the refund claim and pay statutory interest under Section 244A of the Income-tax Act, 1961 expeditiously and preferably within eight weeks from the date of the order. The relief is granted in favour of the assessee.

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