THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON’BLE SRI JUSTICE G.M.MOHIUDDIN WRIT PETITION No.28318 of 2025

ORDER:

Heard Ms. Ananya Kapoor, learned counsel representing Mr. T.Pradyoth, learned counsel appearing for the petitioner and Mr. Raja Shekar Rao Salvaji, learned Senior Standing Counsel for Income Tax Department appearing for the respondents.

2. Petitioner has approached this Court with the following prayer:

“For the reasons stated in the accompanying affidavit, it is prayed that this Hon’ble Court may be pleased to issue a Writ in the nature of Mandamus or any other appropriate writ, order or direction under Article 226 and/or Article 227 of the Constitution of India, to direct the Respondents to pass the correct and necessary appeal effect orders in quantum proceeding in accordance with law and issue the quantum refund due to the Petitioner for A.Y. 2010-11, amounting to Rs.10,63,69,739/- being the balance interest liability due under section 244A and section 244(1A) on the principal amount of Rs.13,68,09,954/- (refunded on 30.07.2025) in a time bound manner and to pass such other order or orders including costs of this Petition in favour of the Petitioner and against Respondents as this Hon’ble Court may deem fit, just and proper in the circumstances of the case.”

3. Department has filed a counter affidavit. Learned Senior Standing Counsel for the respondents has drawn the attention of this Court to the averments made therein and specifically those at sub-paragraphs of paragraph No.17, which is extracted hereunder:

“17. In reply to Ground C, it is respectfully submitted that although it has taken time in the processing of the refund, every possible effort has been made to complete the process at the earliest. It is further submitted that the balance pending refunds have already been processed by CPC-TDS, initially on 10.10.2025 and subsequently on 30.10.2025, and will be credited to the petitioner’s bank account shortly, upon resolution of the current bank account error in the refund banker system by the petitioner. The time taken was neither intentional nor arbitrary but occasioned by bona fide administrative and procedural requirements as outlined below, including the delay from petitioner in complying to a few of these procedures, as stated above.

i) Verification of Bank and Challan Details: The respondents conducted a thorough validation of the petitioner’s bank account and verified each challan claimed for refund to ensure accuracy. This included confirming challan consumption status, proof of payment, and verifying that credit had not already been allowed outside the system.

ii) Assessment of Outstanding Demands: A comprehensive review was undertaken to verify any outstanding demands linked to the petitioner’s TAN: HYDT00554B, as well as all associated TANs and PAN: AAACT2438A across jurisdictions. As this office has jurisdiction only over the Hyderabad TAN, formal communications were issued to all 19 TAN Assessing Officers and the PAN Assessing Officer across India to obtain updated demand positions.

iii) Administrative Transition:

The present incumbent of Respondent No. 1 assumed charge on 02.05.2025 following annual transfers and, upon taking charge, initiated a detailed review of all pending refund matters concerning the petitioner. A communication was issued to the petitioner seeking confirmation of the current demand status against all associated TANs and the PAN.

iv) Submission of Information by the Petitioner: In response, the petitioner, vide letter dated 28.05.2025, stated that most demands were not enforceable, except for a demand of Rs.88,09,385/- against sister TAN CHET0274B, for which a stay was pending. The petitioner subsequently furnished the stay order issued by ITO (TDS), Ward-3(3), Chennai, vide Order No. C.No. Stay of Demand/(TDS) Ward-3(3)/2025-26 dated

18.06.2025.

v) Processing of Rectification and Refund Application: Following verification, all other demands (aggregating to appr