Timely compliance with statutory refund orders is imperative to protect taxpayer rights under the Income Tax Act and the Constitution.

JUDGMENT

Manmohan, J.:

C.M.No.44725/2022

Exemption allowed, subject to all just exceptions.

Accordingly, the application stands disposed of.

W.P.(C) No.14590/2022

1. Present writ petition has been filed seeking a direction to the Respondents to pass the appeal effect order pursuant to the Income Tax Appellate Tribunal (` ITAT') order dated 09th May, 2022 and to issue refund of Rs.11,56,81,040/-along with up-to-date interest as well as issue short interest of Rs.1,74,91,170/-received from the Respondents after giving effect to the order of CIT(A) for the Assessment Year 2010-11 and to release the refund of Rs. 60,00,000/-seized at the time of search along with up-to-date interest being due to the Petitioner pursuant to the ITAT order dated 09th May, 2022.

2. Learned counsel for the Petitioner states that the ITAT vide order dated 09th May, 2022, decided all issues in favour of the Petitioner and the entire additions were deleted, thus allowing the appeal of the Petitioner and dismissing the appeal of the Respondents. He states that the Petitioner is now entitled to a refund of remaining taxes paid under protest amounting to Rs.11,56,81,040/-along with applicable interest under Sections 244A/244A(1A) of the Income Tax Act, 1961 (`the Act').

3. Learned counsel for the Petitioner states that the Petitioner has filed letters dated 20th May, 2022 and 11th July, 2022 with the Respondents for passing of an appeal effect order pursuant to the ITAT order and also for release of refunds legally due to the Petitioner, but to no avail. He submits that non-issuance of refund is in violation of Article 265 of the Constitution of India and also against Sections 237 and 240 of the Act.

4. Issue notice. Mr.A.Renganath, Advocate accepts notice on behalf of the Respondents-Revenue. He states that the Revenue is in the process of filing an appeal against the order of the ITAT.

5. Having heard learned counsel for the parties, this Court is of the view that the Respondents-Revenue had sufficient time to file an appeal against the order of the ITAT. In any event, in accordance with the mandate of law, the appeal effect order has to be passed within three months of passing the appeal order.

6. Keeping in view the limited prayer sought in the present writ petition, the same is disposed of along with the pending application with a direction to the Respondents-Revenue to consider:

(i) Issue of refund of Rs.11,56,81,040/-along with up-to-date interest to the Petitioner;

(ii) Issue of short interest payment of Rs.1,74,91,170/-to the Petitioner after giving effect to the order of CIT(A) for the Assessment Year 2010-11; and

(iii) Release of refund of Rs.60,00,000/-to the Petitioner, seized at the time of search along with up-to-date interest, in accordance with law.

7. The necessary appeal effect orders and payments of refunds shall be made within the said period of six weeks. The rights and contentions of all the parties are left open.