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ARUN BHANSALI, ASHUTOSH KUMAR
Dwejesh Acharya – Appellant
Versus
Income Tax Officer – Respondent
ORDER :
This writ petition has been filed by the petitioner seeking a direction to the respondents for payment of interest on the amount of refund as due against the respondents.
2. Submissions have been made that pursuant to Vivad Se Vishwas Act, 2020 ('VSV Act') for settlement of disputes, the petitioner filed an application on 17/6/2020 for the dispute relating to Assessment Year 2013-14 and after making necessary compliance got the Form No. 3 of the VSV Act on 25/1/2021 indicating a refund of Rs.3,47,03,505/-. Whereafter, on filing Form No. 4, the petitioner received Form No. 5 from the respondents under VSV Act on 8/3/2021 indicating that full and final settlement has been done in accordance with Form No.3.
3. Pursuant to the Form Nos. 3 & 5 as issued by the respondents under VSV Act, the petitioner made several representations for issuing refund of Rs.3,47,03,505/-. After making several requests, the petitioner received/got adjustment against demands for Rs.11,86,641/- on 10/1/2022, Rs.2,59,48,974/- on 30/5/2022, Rs.70,476/- on 22/10/2021 and Rs.74,97,414/- on 20/1/2022 totaling Rs.3,47,03,505/-, however, no interest was paid for the delayed payment.
4. Learned counsel for the pe
Petitioner entitled to interest on delayed refund from the date of entitlement, despite provisions of VSV Act prohibiting interest prior to refund determination.
The court ruled that interest on delayed refund is due despite provisions of the VSV Act denying such interest, emphasizing accountability for wrongful retention of funds.
In tax matters, entitlement to interest on delayed refunds, including on interest accrued, is affirmed, highlighting the principle that overdue amounts accrue additional interest.
The court held that the Revenue is accountable for delayed refunds and must pay interest despite the exclusion in the Direct Tax Vivad se Vishwas Act, 2020.
The obligation to refund tax amounts includes the right to interest for undue retention, as established in the Direct Tax Vivad se Vishwas Act, 2020.
Provision of law providing for interest on delayed payment of refund would apply to only those cases that fall under the purview of section 40(1) of the VAT Act and to no other. That is the plain eff....
The main legal point established in the judgment is the entitlement of a dealer to receive interest on the refund amount as per the provisions of section 38 of the VAT Act, and the requirement for th....
The main legal point established in the judgment is that the petitioner was entitled to interest on the amount paid under Section 220(2) of the Act as part of the refund under Section 240 of the Act.....
The petitioner is entitled to interest at 6% per annum on delayed refund from the date of application, as per statutory provisions of the Customs Act.
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