Azim Premji Foundation Vs DCIT (Karnataka High Court)
Karnataka HC Pulls Up IT Dept: Refund Excess TDS to Azim Premji Foundation with Interest u/s 244A
Azim Premji Foundation, represented by its Finance Leader, approached the Court after repeated representations for refund of excess TDS deduction remained unattended. Petitioner contended that once excess tax has been deducted, the Dept is duty bound to process the refund & remit the same to the account of Assessee along with statutory interest.
Petitioner relied on the order of a co-ordinate bench in WP No.4652/2025 (disposed on 28.04.2025) where in similar circumstances the Court had directed the Department to grant refund with interest without delay.
Counsel for the Department submitted that the petitioner’s representation would be duly considered & appropriate orders passed within an outer limit of six weeks.
The Court noted that in an earlier matter (WP No.4652/2025), directions were issued to give effect to the ITAT’s order & process refund along with interest. Following the same line, the Court observed that if the petitioner is legally entitled, the refund cannot be withheld indefinitely.
The Court disposed of the petition with the following directions:
- Respondents to consider the representations of the petitioner & pass necessary orders within six weeks.
- If found eligible, refund along with statutory interest u/s 244A shall be made to the petitioner without compelling it to once again knock at the doors of the Court.
The ruling reiterates that refunds lawfully due to a taxpayer/charitable entity cannot be withheld on technical or administrative grounds. Where excess TDS is deducted, the Revenue is bound to grant refund along with interest u/s 244A within a reasonable time.
