ACIT Vs Satwashil Vasant Mane (Kerala High Court)
Kerala High Court held that interest is admissible to the taxpayer in case of refund under Direct Tax Vivad Se Vishwas Act, 2020. Accordingly, writ appeal of the revenue fails and the same is dismissed.
Facts- The 1st respondent-assessee approached the writ court aggrieved by the inaction on the part of the appellants in not releasing interest on the amount of refund to which the 1st respondent-assessee was entitled to in pursuance to issuance of a certificate in Form-5 under Sections 5(2) r/w 6 of the Direct Tax Vivad se Vishwas Act, 2020.
By an order of assessment u/s. 143(3) of the Income Tax Act, 1961 for the assessment year 2016-17, the assessee was assessed to a total income of Rs.1,86,80,000/-, which includes an addition of Rs.75,00,000/- as unexplained investment. In the meantime, the assessee filed a declaration and undertaking under sub-Section (5) of Section 4 of the Direct Tax Vivad se Vishwas Act, 2020. On filing of the said undertaking and declaration, a certificate was drawn by the Assistant Commissioner of Income Tax showing that the assessee was entitled for a refund of Rs.28,81,185/-. Immediately thereof, PCIT issued a certificate in Form-5 on 24.11.2021 under sub-Section (2) of Section 5 of the Act. Thereafter, on 29.11.2023, the Assistant Commissioner of Income Tax passed order giving effect to the refund, but however denying interest.
