Assessee LLC, incorporated in USA became eligible for refund of Rs.2,19,51,010/- vide an intimation u/s. 143(1) of IT Act on 21.03.2022. Since refund was not granted, petitioner raised a grievance with CPC on 22.04.2022, that it is unable to input the SWIFT code and IBAN as per Sl.No.13.b. of the ITR. Eventually, after being informed orally that the refund claim cannot be processed unless a bank account is set up in India, the petitioner opened up a bank account in India; which was validated by the respondents on 07.07.2023. After filing the writ petition refund was issued on 05.10.2023. Interest u/s. 244A was granted only upto 21.03.22 and not for the later period.

The grievance raised on 22.04.2022 is of particular relevance. Allowing a reasonable time of about 7 days for the respondents to respond appropriately to the request to enable the portal, the refund should have been processed.

The delay is not attributable to the assessee. Section 244A provides for refund at the rate of ½% per month or 6% per annum. As regards the period subsequent to intimation dated 21.03.2022, the documents on record indicate that the petitioner endeavoured to input the SWIFT code and IBAN in April 2022. Therefore, the petitioner is entitled to interest for the period from 01.05.2022 until the date of receipt of refund i.e 05.10.2023.

The writ petition is disposed of by directing the respondents through CPC to pay interest on the refund at the rate specified in Section 244-A of the IT Act within two months.