Kalmar India Pvt. Ltd. Vs Union of India & Ors (Bombay High Court)
Bombay High Court: Directs expeditious grant of income tax refund; takes serious note of prolonged departmental inaction
Summary: The petition concerned Assessment Year 2008-2009 and the non-grant of the balance refund arising from a Section 154 rectification order dated 4th March, 2021. The Petitioner, engaged in manufacturing cargo handling equipment, had undergone amalgamation involving Kalmar India Pvt. Ltd., Cargotech Manufacturing India Pvt. Ltd. and Cargotech India Pvt. Ltd., pursuant to an Order of the High Court of Karnataka dated 18th September, 2008, effective from 1st January, 2008. For A.Y. 2008-2009, the Petitioner filed its return declaring total income of Rs.1,43,20,186/- and subsequently revised the return under Section 139(4) declaring a loss of Rs.2,67,59,205/-. The Assessing Officer passed an Assessment Order dated 30th September, 2010 disallowing the loss. The CIT (Appeals) partly allowed the appeal on 3rd February, 2014, and the ITAT Mumbai thereafter allowed the Petitioner’s appeal by order dated 27th July, 2016. Pursuant to the appellate outcome, the Assessing Officer passed the rectification order dated 4th March, 2021 determining a refund of Rs.1,60,90,386/-. The Centralized Processing Centre released Rs.1,16,40,102/- on 12th October, 2021, while the Petitioner stated that the balance amount of Rs.40,28,944/- remained unpaid despite repeated representations. The Bombay High Court, on 21st April, 2025, took note of the prima facie inordinate delay and directed the Principal Chief Commissioner, Income Tax – 6, Mumbai to file an affidavit explaining the reasons for the delay and identifying the persons responsible. The Court also observed that where delay attributable to officials results in liability for payment of interest, the officials responsible should be made responsible for such interest rather than leaving the State Exchequer alone burdened. An Affidavit in Reply dated 25th August, 2025 explained the issues concerning online payment of the balance amount and stated that the CPC had cleared issuance of a physical cheque. The Petitioner subsequently received Rs.47,99,250/- by SBI cheque dated 3rd June, 2025 towards the principal amount and part interest, but contended that the entire interest had not been paid. The Respondent stated that, according to it, the entire interest had already been paid, while also submitting that the Petitioner could furnish its computation of interest to the Assessing Officer for examination. The Bombay High Court accordingly directed the Petitioner to submit its computation of interest to the Assessing Officer within one week, bringing out the balance interest claimed as due and payable, and directed the Assessing Officer to examine the computation and pay the balance interest determined, if any, within four weeks from receipt of the computation. The Rule was made absolute in those terms and the writ petition was disposed of, with no order as to costs.
