Held, allowing the petition, that since form 5 under the Direct Tax Vivad se Vishwas Act, 2020 read with the Direct Tax Vivad se Vishwas Rules, 2020 had been issued on June 15, 2021, the jurisdictional Assessing Officer was duty bound to have passed consequential orders and issued refunds latest by July 31, 2021. The assessee was entitled to refund which ought to have been processed and paid latest by July 31, 2021. Since the amount had been paid only on May 26, 2023, the assessee was entitled to interest on the refund amount for the period from August 1, 2021 till May 26, 2023 at the rate of 6 per cent. per year which was the rate prescribed under section 244A.
UPS Freight Services India Pvt. Ltd. v. Dy. CIT [2023] 156 taxmann.com 489 / (2024)466 ITR 51/ 336 CTR 261 (Bom)(HC)
S. 244A : Refunds-Interest on refunds-Instructions of Central Board Of Direct Taxes-Failure to refund amounts payable under Form 5 issued Under Direct Tax Vivad Se Vishwas Act, 2020 Read With Direct Tax Vivad Se Vishwas Rules, 2020-Assessee entitled to interest on refund for period from date of issue of Form 5 till date of payment.[S. 237, Direct Tax Vivad Se Vishwas Act, 2020, Direct Tax Vivad Se Vishwas Rules, 2020, Art. 226]