Rajneesh Agarwal Vs ITO (Calcutta High Court)
Summary: The present case concerns a writ petition filed by the assessee seeking direction to the Income Tax Department to release a refund of Rs.22,73,833/- along with interest, which had been withheld under Section 245 of the Income Tax Act, 1961. The petitioner, a practicing Chartered Accountant, maintained his accounts on a cash basis and filed his income tax return for AY 2018-19 in Form ITR-3 on 14th August 2018, declaring a net income of Rs.37,09,520/- and a payable tax of Rs.9,53,117/-. TDS amounting to Rs.39,51,350/- had been deducted, making the petitioner eligible for a refund of Rs.29,98,230/-.
Subsequently, the petitioner received an intimation under Section 143(1) on 7th January 2020, reflecting net payable tax of Rs.9,75,430/- with TDS allowed at Rs.1,68,300/-. A rectification order under Section 154 dated 16th January 2024 recorded a refund of Rs.55,54,357/-, of which Rs.22,73,833/- was withheld under Section 245, leaving a net refund of Rs.32,80,524/-. Despite repeated representations, the petitioner received only Rs.18,26,159/- on 18th March 2024, with Rs.14,65,365/- withheld without explanation.
The petitioner sought clarification and refund through letters dated 20th March and 13th May 2025, as well as a rectification petition under Section 154 on 2nd August 2024, without satisfactory resolution. A writ petition (WPA No.6316 of 2025) was filed, later withdrawn on assurances from the Income Tax Department, which partially refunded Rs.14,99,725/- on 5th May 2025. Since the remaining dispute was unresolved, the petitioner filed the present writ petition.
