Laqshya Media Ltd. v. Dy. CIT (2024) 298 Taxman 774 (Bom.)(HC)

S. 243 : Refund-Interest on delayed refunds-Failure to grant interest-Strictures-Interest being paid in view of delay by department and officers did not realize that it was a public money that was used to pay interest and an effort should be made to save this public money-Failure to pay same would be viewed as a wilful disobedience of orders and may lead to contempt proceedings. [Art. 226]

Assessee received a refund of certain sum including interest from 1st April, 2020 to 22nd October, 2021.  Assessee stated that payment was received only on 8th June, 2022 and, therefore, interest was payable up to and including 8th June 2022.  On writ the Department stated it needed two months to make said payment Court held that  this was a most audacious request department could have made because this interest also was being paid in view of delay by department and officers did not realize that it was a public money that was used to pay interest and an effort should be made to save this public money. Court directed that  interest would be calculated upto 1st March, 2024 and department was directed to pay balance interest on or before 1st March, 2024 and failure to pay same would be viewed as a wilful disobedience of orders of  Court and may lead to contempt proceedings.