Case Law Details
Coda Global LLC Vs DCIT (Madras High Court)
Introduction: The Madras High Court has intervened in the case of Coda Global LLC vs. DCIT, addressing the delayed tax refund issue. Initially seeking a mandamus for refund with interest, the petitioner later amended the prayer to focus solely on interest payment.
Detailed Analysis: Coda Global LLC, a Limited Liability Company incorporated in the USA, sold equity shares in India during the financial year 2020-21. Despite the petitioner’s claim for a refund of Rs. 2,19,51,010/-, delays persisted. The Income Tax Department intimated the entitlement to a refund of Rs. 2,27,20,180/- in March 2022.
The petitioner faced challenges when attempting to input the SWIFT code and IBAN, crucial for processing the refund, in April 2022. Following oral advice that a bank account in India was necessary, the petitioner established one, validated by the respondents in July 2023. The refund was finally processed on 05.10.2023, prompting the petitioner to seek interest and compensation for the delay attributable to the Income Tax Department.
The petitioner’s counsel argued that the entitlement to a refund was acknowledged in the March 2022 intimation. Referring to relevant judgments, they emphasized the petitioner’s compliance with disclosing foreign bank account details, including IBAN. The delay, they argued, was solely due to the Income Tax Department’s failure to enable SWIFT code input.
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