Basudeo Agarwal V. The Union of India and The Central Board of Direct Taxes and The Principal Chief Commissioner of Income Tax NER, Guwahati and The Assistant Commissioner of Income Tax, Guwahati and The Deputy Commissioner of Income Tax, Guwahati

WP(C)/1326/2021

AI Insights

The case involves Basudeo Agarwal, the petitioner, who was entitled to a tax refund of Rs.1,77,244 for the assessment year 2016-17, as per an earlier court order. The refund was delayed, leading to the filing of this writ petition seeking interest on the delayed refund under Section 244A of the Income Tax Act, 1961. The court had previously directed the refund, which was eventually processed, but the petitioner sought interest for the delay in payment. The court's decision mandates the Income Tax Department to assess the petitioner's entitlement to interest and act accordingly within the stipulated time frame.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 800911 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 01-03-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SC INCOME TAX
• Assessee Lawyers: R DUBEY
• Keywords: Assessment Year 2016-17; Delayed refund; Income Tax Refund; Interest on Refund
• Section: 244A

Judgement Text

"Page No.# 1/3 GAHC010036452021 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/1326/2021 BASUDEO AGARWAL S/O LATE NOWRANG RAI AGARWALA, RESIDENT OF HOUSE NO. 90, RADHA NAGAR, VIP ROAD, GUWAHATI 781022, ASSAM VERSUS THE UNION OF INDIA AND 4 ORS. REPRESENTED BY THE SECRETARY DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, 128A, NORTH BLOCK, NEW DELHI 110001 2:THE CENTRAL BOARD OF DIRECT TAXES 9TH FLOOR LOK NAYAK BHAWAN KHAN MARKET NEW DELHI 110003 REPRESENTED BY ITS CHAIRMAN 3:THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX NER. GUWAHATI AAYAKAR BHAWAN CHRISTIAN BASTI GUWAHATI 781005 ASSAM 4:THE ASSISTANT COMMISSIONER OF INCOME TAX GUWAHATI AAYAKAR BHAWAN CHRISTIAN BASTI GS ROAD GUWAHATI 781005 5:THE DEPUTY COMMISSIONER OF INCOME TAX Page No.# 2/3 GUWAHATI AAYAKAR BHAWAN CHRISTIAN BASTI GS ROAD GUWAHATI 78100 Advocate for the Petitioner : MR. R DUBEY Advocate for the Respondent : SC, INCOME TAX BEFORE HONOURABLE MR. JUSTICE ACHINTYA MALLA BUJOR BARUA ORDER Date : 01-03-2021 Heard Mr. R. Dubey, learned counsel for the petitioner. Also heard Mr. S. Sarma, learned counsel for the respondent Income Tax Department. 2. The petitioner who is an assessee under the Income Tax was entitled to a refund for an amount of Rs.1,77,244/- in respect of the assessment year 2016-17 as per the assessment order dated 22.10.2018. When the amount was not refunded to the petitioner, WP(C) No. 1243/2020 was instituted which was given a final consideration by the order dated 19.02.2020 whereby the respondents in the Income Tax Department was directed to refund the amount of Rs.1,77,244/- within a period of two months. 3. It is stated that pursuant to the said direction, the amount of Rs.1,77,244/- had been refunded to the petitioner on 26.08.2020. In the given circumstance, this writ petition is instituted on the grievance that under Section 244A of the Income Tax Act, 1961, the respondents are liable to pay the interest. Section 244A provides that where refund of any amount becomes due to the assessee under the Act, he shall, subject to the provisions of the section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the manner provided in Clauses a, aa and b of Section 244A(1) read with the explanation thereof. 4. As per Section 244A an assessee is entitled to an interest on delayed for the payment of refund under the law. 5. In view of such provisions, the respondents in the Income Tax Department are directed to consider the claim of the petitioner for interest under Section 244A for the amount of Rs.1,77,244/- which had already been refunded to him. Upon such consideration, to pass a Page No.# 3/3 reasoned order, firstly whether under the facts and circumstance and under the law, the petitioner is entitled to any such interest and if the respondents come to a conclusion that the petitioner is not entitled for the interest, a reasoned order be passed and communicated to the petitioner and if the respondents arrive at conclusion that the petitioner is entitled to any such interest, as may be calculated under Section 244A and the amount of interest be paid within a period of two months from the date of receipt of certified copy of the order. 6. Writ petition stands disposed of in the above terms. JUDGE Comparing Assistant "