Refund not paid due to technical defect should be processed and paid along with appropriate interest

Neema Nidhi Ltd Vs ACIT (Kerala High Court)

Kerala High Court directed the Centralized Processing Centre at Bengaluru to process the refund which are due to the petitioners which is not processed due to technical defect. Also directed to grant interest on account of delay in payment of refund.

Facts-

The petitioners in these cases suffered orders of assessment and orders imposing penalty for assessment years 2010-11 and 2016-17. They filed applications under the Vivad Se Vishwas Act, 2000 and the matter has been settled. As a consequence of settlement, certain amounts have to be refunded to the petitioners. However, such refund has not been made despite the passage of merely one year and 9 months from the date of settlement.

Conclusion-

Held that writ petition will stand disposed of directing that the refund due to the petitioners shall be processed without any further delay and shall be be issued at any rate within a period of 2 months from the date of receipt of a certified copy of this judgment. If the petitioners are entitled to any interest on account of the delayed payment of refund, the same shall also be granted to the petitioners.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The petitioners in these cases suffered orders of assessment and orders imposing penalty for assessment years 2010-11 and 2016-17. They filed applications under the Vivad Se Vishwas Act, 2000 and the matter has been settled. As a consequence of settlement, certain amounts have to be refunded to the petitioners. However, such refund has not been made despite the passage of merely one year and 9 months from the date of settlement.

2. The learned Standing Counsel appearing for the respondent Department states that the refund could not be made only on account of some technical defect and the Director General of Income Tax has already taken up the matter with the Centralized Processing Centre, Bengaluru . It is submitted that the no manual refund is possible and all refund applications are processed at the Centralized Processing Centre at Bengaluru. It is submitted that the refund will be issued shortly.

3. Taking into consideration of the submissions, this writ petition will stand disposed of directing that the refund due to the petitioners shall be processed without any further delay and shall be be issued at any rate within a period of 2 months from the date of receipt of a certified copy of this judgment. If the petitioners are entitled to any interest on account of the delayed payment of refund, the same shall also be granted to the petitioners.