System Default is the standard excuse given by the Department when it comes to giving refunds

 High Court of Bombay Observed System Default is the standard excuse given by the Department when it comes to giving refunds.

Title : Matrix Publicities and Media India Pvt. Ltd. v. Deputy Commissioner of Income Tax Circle16(1), Mumbai & Ors

Decided on : 25th October 2023

Case No. : W.P (L) No.16764/2023



The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that the excuse used is that the system under the control of the Centralized Processing Centre (CPC), Bangalore, has some issues and, therefore, amounts are not being released to assesses. Interest is payable by law until the date of refund, and the Department does not realize that it is public money that is used to pay interest. That is a waste and a burden on the exchequer.

Facts of the Case

The Petition is restricted to seeking refund amount of Rs.19,69,46,789/- for Assessment Year 2020-21. But it appears amount payable is Rs.19,79,40,376/- and Mr. Singh has nothing to dispute this amount. Mr. Singh relies on affidavit of reply of one Mr. Parmanand Pravin Darade, Assistant Commissioner of Income Tax16(1), Mumbai affirmed on 20th October 2023.

“A copy of this order be sent to the PMO, the Hon’ble Finance Minister GOI, the Hon’ble Law Minister GOI, the Central Board of Direct Taxes and to the Attorney General for India for information and necessary action”.

Case Analysis and Decision

The department sorted out its technical issues, totally unrelated to any substantial legal issue, nevertheless contravening the fundamental right of Petitioner to receive undisputed amount of refund, the present proceedings would not have crept into the litigation arena.

The Court ordered Respondents either by itself or through CC shall ensure that the amount is credited to Petitioner’s account on or before 4th November 2023 with interest up to the date of payment in accordance with law.

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Written by- Nimisha Sunny

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