Allwoing the petition the Court , observed that CBDT had not replied to the assesse and application was still pending. The High Court further observed that if the assesse was correct in pointing out that there was clear excess deduction of tax, the assesse would be liable to refund thereof. Hence, unless the delay was gross or intentional or arising out of inaction or lethargy, the tax mistakenly deposited could not be retained by the government. High Court further held that the CBDT had powers under S.119 of the Act to condone the delay and would be able to condone the delay. The High Court further held that the issue was pending with the CBDT for a long time and hence High Court itself would condone the delay since the last date of filing refund claim was 31.03.2008, and assesse approached the authorities on 15.12.2008. Accordingly The High Court has directed the AO to decide the matter on merits at the earliest.( AY.2005 -06)