Anjul Vs Office of PCIT-12 (Delhi High Court)
Summary: Delhi High Court held that the petitioner was entitled to interest on the delayed refund determined under the Direct Tax Vivad Se Vishwas Act, 2020. The petitioner sought refund of Rs.16,00,51,690/- for assessment year 2010-11 and Rs.1,17,03,678/- for assessment year 2011-12, as determined by the respondents on 05 April 2021. A final certificate in Form-5 had been granted under the VSV Act setting forth the particulars of taxes refundable towards full and final settlement of tax arrears. Although the refund was paid during pendency of the writ proceedings, the petitioner sought interest for the period of delay.
The Revenue contended that the VSV Act did not provide for interest on refunds and attributed the delay to two PAN numbers of the deceased assessee, furnishing of a No Objection Affidavit by the surviving legal heir and technical issues at CPC. The High Court rejected these explanations. It held that refund due and payable to an assessee is a debt owed by the Revenue and there was no provision in the VSV Act prohibiting award of interest on delayed refund. The earlier PAN issue had already been resolved by the Court and the No Objection Affidavit had been furnished on the next day after it was sought.
