Matrix Publicities and Media India (P.) Ltd( 2024) 296 Taxman 85 (Bom.)(HC)

S. 237 : Refunds -Interest on refunds—Public money – Technical issues at the Centralized Processing Center (CPC) – The High Court reprimanded the Department, stating that the interest is payable in law until the date of refund, and the Department failed to realise that it is the public money used to pay interest, which is a burden on the exchequer- A copy of the Order was asked to be sent to the Office of Honourable Prime minster , The Hon’ble Finance Minister GOI, The Hon’ble Law Minister, the Central Board of Direct Taxes and to the Attorney General for India for information and necessary action.[ S. 244A , Art. 226 ]

The petitioner filed the writ petition for failure to issue refund with interest . Department contended that the interest the system under the control of Centralized Processing Center (“CPC”), Bangalore has some issues and, therefore, amount is not being released to assesses. Allowing the petition the Court held that , the standard excuse given by the Income Tax Department is that the refund cannot be processed due to technical issues at the CPC. The High Court  reprimanded the Department, stating that the interest is payable in law until the date of refund, and the Department failed to realise that it is the public money used to pay interest, which is a burden on the exchequer. A copy of the Order was asked to be sent to the  Office of the Honourable Prime minster ,  The Hon’ble Finance Minister GOI, The Hon’ble Law Minister, the Central Board of Direct Taxes and to the Attorney General for India for information and necessary action .  The Court also directed the respondents either by itself or through CPC shall ensure that the amount is credited to Petitioner’s account on or before 4th November 2023 with interest upto the date of payment in accordance with law. (AY. 2020 -21)