Tax authorities are obligated to comply with statutory requirements regarding tax refunds, and failure to do so may contravene constitutional provisions.

Headnote:(A) Income Tax Act, 1961 - Sections 244A(1), 244(1A), 153(5) - Writ petitions seeking directions to issue refunds based on the orders of ITAT and High Court - Petitioners allege that legitimate refunds are blocked due to respondents' failure to pass orders giving effect to ITAT decisions - Court emphasizes the necessity for compliance with statutory provisions and expeditious processing of refunds as mandated by the ITAT and High Court. (Paras 1-4)

(B) Constitutional Law - Article 265 and 300A - Withholding of refunds held to be contrary to constitutional provisions, creating a clear expectation of timely issuance of refunds. (Para 4)

Facts of the case:
The petitioner filed multiple writs requesting the issuance of specific refunds based on various tax assessment orders and ITAT directions, alleging the inaction of tax authorities despite multiple reminders.

Findings of Court:
The Court directed respondents to pass necessary orders and process the refund payments within a period of six weeks while allowing the rights of all parties to remain open for future considerations.

Issues: The primary issue revolved around the non-compliance by tax authorities in issuing refund orders pursuant to ITAT rulings and the constitutional implications of such inaction.

Ratio Decidendi: The Court highlighted the obligation of tax authorities to comply with statutory mandates regarding refunds, reinforcing the position that undue delays in issuing these refunds could constitute a violation of constitutional rights.

Result: Writ petitions disposed of with directions to issue refunds within six weeks.

Table of Content
1. refund orders sought under specific itat directions. (Para 1)
2. petitioner's grievance over lack of compliance by respondents. (Para 2 , 3 , 4)
3. acknowledgement of respondent's process for issuing refunds. (Para 5)
4. court's order to issue refunds within six weeks. (Para 6)

JUDGMENT

Manmohan, J.:

1. Present writ petitions have been filed seeking directions to the Respondents to pass orders giving effect to the orders of the Income Tax Appellate Tribunal (`ITAT') dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021 as well as the order of the ITAT dated 13th September, 2019 and the order of the Calcutta High Court dated 07th August, 2019 and issue consequential refund of Rs.58,32,30,038/, Rs.11,14,54,207/-, Rs.13,89,08,987/-, Rs.8,11,44,800/-and Rs.1,94,65,800/for the Assessment Years 2009-10, 1996-97, 2016-17, 2001-02 and 1991-92 with interest under Section 244A(1) of the Income Tax Act, 1961 (`the Act') and additional interest under section 244(1A) of the Act.

2. Learned counsel for the Petitioner states that the Respondents have failed to pass orders giving effect to the orders of the ITAT and the High Court without giving any reason due to which the legitimate refunds available to the Petitioner are lying blocked.

3. Learned counsel for the Petitioner states that the Petitioner made several representations to the Respondent No.1 reminding him about passing the order giving effect to the aforementioned orders, but to no avail.

4. Learned counsel for the Petitioner states that the Respondents have grossly failed in their duty in law in not passing the appeal effect orders and issuing refund as per Section 153(5) of the Act and their action of withholding the refund is ex facie contrary to and in contempt of Article 265 and 300A of the Constitution of India.

5. Issue notice. Mr.Kunal Sharma, senior standing counsel accepts notice on behalf of the Revenue and Mr.Ravi Prakash, CGSC accepts notice on behalf of UOI. Mr.Kunal Sharma states that the Revenue is in the process of issuing refunds to the Petitioner.

6. Keeping in view the limited relief sought in the present writ petitions, the same are disposed of along with pending applications with directions to the Respondents to pass the appeal effect order and make payment of refunds pursuant to ITAT orders dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021 as well as the order of the ITAT dated 13th September, 2019 and the order of the Calcutta High Court dated 07th August, 2019 within six weeks in accordance with law. However, the rights and contentions of all the parties are left open.

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Tax authorities are obligated to comply with statutory requirements regarding tax refunds, and failure to do so may contravene constitutional provisions.

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