Bizznet Online Systems Pvt Ltd Vs DCIT (Bombay High Court)
The Bombay High Court ruled in favor of Bizznet Online Systems Pvt Ltd, directing the revenue department to process the company’s pending TDS refund application in a time-bound manner. The petitioner initially sought a refund of ₹6,16,650 with interest under Section 244A of the Income Tax Act, 1961, but later confined the claim to ₹2,89,775, as per a TDS certificate issued by Percept Picture Company Pvt Ltd. The Court noted that the petitioner had filed a representation in June 2019, seeking the refund, but the revenue department had not disposed of the request, leading to this litigation. The department filed an affidavit but failed to clarify whether the TDS deductions were made, necessitating further verification.
Considering the circumstances, the Court instructed the revenue authorities to resolve the matter within three months by verifying the deductions and allowing the refund if justified. The petitioner was given two weeks to submit any additional supporting documents. If the department confirms the deductions, it must process the refund within one month. The Court ruled that no interest would be payable if the refund is issued within two months of determination. However, any further delay beyond this period would make the revenue department liable to pay interest as per the law. The Court refrained from making any factual determinations, leaving the contentions open for future proceedings. The petition was disposed of without any cost order, ensuring a fair resolution for both parties.
