Muthukumaran Rangarajan Vs ITO (Madras High Court)
Madras High Court Directs Timely Processing of Refund granted under section 5(2) of the Vivad Se Vishwas Act, 2020 in Writ Petition: Muthukumaran Rangarajan Vs ITO
Introduction: In a recent development, the Madras High Court addressed the concerns raised by the petitioner, Muthukumaran Rangarajan, challenging the Impugned Rectification Order dated 08.05.2023, and seeking direction for the issuance of a refund granted under section 5(2) of the Vivad Se Vishwas Act, 2020. The court has now issued a directive to the respondent to expedite the processing of the refund within a stipulated time frame.
Background: The petitioner, through a writ petition, contested the Impugned Rectification Order dated 08.05.2023, which was a consequence of an earlier order dated 13.07.2022, passed under section 5(2) of the Vivad Se Vishwas Act, 2020. The order had quantified the refund amount at Rs.31,55,490/-. The petitioner expressed financial distress due to the non-disbursement of the refund, prompting the legal action.
Arguments by the Petitioner: The petitioner’s counsel argued that despite the order for the refund, the amount had not been disbursed by the respondents, causing financial strain on the petitioner. Multiple reminders had been issued to expedite the process.
Response by the Respondents: The senior counsel representing the respondents acknowledged the petitioner’s entitlement to the refund. He informed the court that the respondents had initiated the refund process and sent a request to the Centralised Processing Centre, Income Tax Department, Bengaluru, for the issuance of the refund. Additionally, communication was sent to the Deputy Director concerned.
Court’s Decision: After considering the submissions from both parties, the court directed the respondent to process the refund claim in accordance with the order dated 13.07.2022, passed under section 5(2) of the Vivad Se Vishwas Act, 2020, for the assessment year 2013-14. The court set a specific timeline, mandating the processing of the refund within three weeks from the date of receipt of the court’s order.
Conclusion: With this directive, the Madras High Court has sought to address the financial concerns of the petitioner by ensuring the timely processing of the refund. The court’s decision reflects a commitment to uphold the principles of justice and fairness in matters related to taxation and financial rectifications. The case is scheduled for compliance review on 19.01.2024.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition is filed by the petitioner challenging the Impugned Rectification Order dated 08.05.2023 passed by the respondent which is in consequence to the impugned Rectification Order dated 08.05.2023 and for further direction to the respondent to issue the refund granted vide order dated 13.07.2022 u/s.5(2) of the Vivad Se Vishwas Act, 2020.
2. The learned counsel appearing for the petitioner submitted that the respondent, vide order dated 13.07.2022 passed under section 5(2) of the Vivad Se Vishwas Act, 2020, has quantified the refund of tax amount at Rs.31,55,490/- , however, the same is yet to be refunded by the respondents inspite of several reminders. He further submitted that non disbursement of refund has put the petitioner in financial crunch and hence, he prayed this Court for issuing appropriate direction.
3. The learned Senior counsel appearing for respondents, on instructions, submitted that the petitioner is entitled for refund and the respondents have agreed to refund granted vide order dated 13.07.2022 passed under section 5(2) of the Vivad Se Vishwas Act, 2020 in respect of the assessment year 2013-14. He further submitted that having regard to the same, the respondent has raised a request with Centralised Processing Centre, Income Tax Department, Bengaluru for issuance of Refund and in this regard, he has also sent a communication to Deputy Director concerned of the Department. Stating so, the learned Standing counsel submitted that the claim of refund of the petitioner would be processed by the concerned authorities as early as possible.
4. Thus, taking into consideration the submissions made by the learned counsel appearing for the petitioner as well as the respondent, this Court directs the respondent to process the claim of refund sought by the petitioner based on the order dated 13.07.2022 passed under section 5(2) of the Vivad Se Vishwas Act, 2020 in respect of the assessment year 2013-14, within a period of three weeks from the date of receipt of a copy of this order.
5. With the above direction, this Writ Petition is disposed of. No costs.
6. Post this matter for compliance on 19.01.2024.
