2023 (9) TMI 34

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hwas Rules, 2020. 2. Form No. 5 provides that the Designated Authority has issued a certificate dated 27th February 2021 showing an amount of Rs. 62,81,983/- as refundable to Petitioner. The Central Board of Direct Taxes, Ministry of Finance issued a Central Action Plan for 2021-22 in which Clause 9 (page 74) reads as under: "9. JAOs to pass consequential orders and reduce demand or issue refunds, latest by 31.07.2021 in all VsV cases wherein Form 5 has been issued upto 30.06.2021. For all subsequent issue of Form 5, i.e. 01.07.2021 onwards JAOs may give necessary effect within 30 days." (emphasis supplied) 3. Since Form No. 5 has been issued on 15th June 2021, JAO was duty bound to pass consequential orders and issue refunds latest ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Act, 1961 (the Act). In response, Mr. Gandhi relies on the judgment of the Hon'ble Delhi High Court in Mrs. Anjul v. Office of Principal Commissioner of Income-tax [2022] 145 taxmann.com 140 (Delhi) to submit that the Hon'ble Delhi High Court relying upon the judgment of the Hon'ble Apex Court in Union of India v. Tata Chemicals Ltd. [2014] 43 taxmann.com 240 has held, State having received the money without right and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest. Mr. Gandhi submits that in that case, Petitioner was an individual and the Cou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f Tata Chemicals Ltd. (Supra) and the same reads as under: "37. A "tax refund" is a refund of taxes when the tax liability is less than the tax paid. As per the old section an assessee was entitled for payment of interest on the amount of taxes refunded pursuant to an order passed under the Act, including the order passed in an appeal. In the present fact scenario, the deductor/assessee had paid taxes pursuant to a special order passed by the assessing officer/Income Tax Officer. In the appeal filed against the said order the assessee has succeeded and a direction is issued by the appellate authority to refund the tax paid. The amount paid by the resident/deductor was retained by the Government till a direction was issued by the appell....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... apparent obligation to reimburse the deductors lawful monies with the accrued interest for the period of undue retention of such monies. The State having received the money without right, and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest. Whenever money has been received by a party which ex ae quo et bono ought to be refunded, the right to interest follows, as a matter of course." (emphasis supplied) 9. In the present case, it is not in doubt that Petitioner was entitled to refund of Rs. 62,81,983/- which ought to have been processed and paid latest ....