Case Law Details
Grace Associates Vs Union of India and Ors. (Bombay High Court)
Introduction: The case of Grace Associates Vs Union of India and Ors. before the Bombay High Court revolves around a refund issue pertaining to income tax assessments for multiple assessment years. The court’s judgment sheds light on the negligence of tax authorities and the petitioner’s pursuit of justice through numerous correspondences.
1. Admission of Refund: The affidavit filed by Ms. Kanchan Bhatkande acknowledges the refund amounts due to the petitioner for various assessment years. However, it highlights the negligence of tax officials in issuing the refunds promptly, citing vague reasons such as “system issues.”
2. Lack of Response: Despite the petitioner’s repeated attempts through letters, there has been a lack of response from the tax authorities, indicating a disregard for the petitioner’s rights and concerns.
3. Questionable Follow-Up: The affidavit from the respondents mentions ongoing efforts to expedite the refund process, but fails to provide concrete evidence of follow-up actions. The sudden mention of follow-up just days before the court hearing raises doubts about its authenticity.
4. Court Directive: The court directs the respondents to ensure the refund, along with accrued interest, is credited to the petitioner’s account by a specified date. Failure to do so would result in the issuance of a cheque for the total refund amount with interest.
5. Future Action: The court schedules a follow-up hearing to ensure compliance and demands a detailed calculation of interest accrued on the refund amount.
Conclusion: The judgment in Grace Associates Vs Union of India and Ors. case underscores the importance of timely and efficient administration of tax refunds by government authorities. It exposes the systemic issues and negligence within the tax department, necessitating judicial intervention to safeguard the rights of taxpayers. The court’s directives serve as a reminder of the accountability owed by authorities in fulfilling their obligations and ensuring justice for taxpayers.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Affidavit in reply has been filed through one Ms. Kanchan Bhatkande affirmed on 20th April 2024 in which it is admitted that there is refund of Rs.2,16,950/- for A.Y. 2006-07, Rs.2,55,340/- for A.Y. 2008-09 and Rs.3,04,865 for A.Y. 2009-10 totaling to Rs.7,77,165/- payable to petitioner. It is also admitted that refund is directed to be issued but according to the officer “due to system issue”, the refund remained to be issued. What was the system issue nobody knows. It only reflects clear negligence of the officer including the person who has filed this affidavit. Ms. Omle to a query posed by the court stated that this officer took charge of this desk sometime in 2022.
2. Petitioner has written innumerable letters which has not been even attended to.
3. The affidavit in reply only states that refund of Rs.7,77,165/- is in the process of issue by CPC and respondents are constantly keeping follow up with the CPC for release of refund so that the refund will be released at the earliest. We find it rather strange that only on 17th April 2024 the order giving effect to the order of Commissioner of Income Tax (Appeal) for A.Y. 2009-10 has been passed and the officer states that they have been constantly keeping follow up with CPC for release of refund. Nothing is annexed to the affidavit as to when this constant follow up was made and why within three days constant follow up was required.
4. Ms. Omle on instructions from Ms. Bhatkande states that the entire amount of refund together with interest payable under Section 244A of the Income Tax Act, 1961 (the Act) will be credited to the account of petitioner not later than 10.30 a.m. on 30th April 2024. Respondents are also directed that if the amount is not so credited, on 30th April 2024 at 2.30 p.m. respondent shall bring cheque in favour of petitioner for the entire amount of refund together with accumulated interest under Section 244A of the Act upto 29th April 2024.
Not later than 29th April 2024 the calculation as to how the interest has been worked out will also be provided to petitioner’s advocate.
5. Stand over to 30th April 2024 at 2.30 p.m.
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