M N Dastur & Company Pvt. Ltd. Vs DCIT (Karnataka High Court)
Refund Justice – Tribunal Allowed, Yet Refund Delayed? HC Steps In to direct IT Dept to Release Dues within 8 Weeks; Karnataka HC Directs IT Dept to Grant Refund with Interest Pursuant to ITAT’s Order
Karnataka High Court considered a petition filed seeking enforcement of refund pursuant to the order of the Tribunal.
M N Dastur & Company Pvt. Ltd., a company registered under the Companies Act, had succeeded before the Tribunal in ITA Nos.118 & 119/2022 for AYs 2015-16 & 2016-17. Tribunal by order dated 26.05.2022 directed AO to examine & grant refund along with interest u/s 244A(1) & 244A(1A).
Despite repeated representations on 30.05.2022, 04.08.2023, 06.08.2024 & 18.10.2024, Revenue failed to pass an Order Giving Effect (OGE) or grant the refund. Aggrieved by this inaction, Assessee approached the High Court.
Petitioner submitted that once the Tribunal’s order has attained finality, the Department is duty-bound to give effect to it. The withholding of refund despite clear appellate directions is arbitrary & violative of law.
Revenue’s counsel submitted that if reasonable time is granted, necessary steps would be taken to comply with the Tribunal’s order & process the refund in accordance with law.
