Delhi HC Orders Income Tax Refund of Rs 6.42 Lakh with 53% Interest

Introduction

• The petitioner, Mr Goel, approached the Delhi High Court to claim a tax refund of Rs 6.42 lakh along with Rs 3.55 lakh interest for assessment years 2007-08, 2015-16, 2017-18, and 2018-19.
  
• Earlier, he had filed a case with the Commissioner of Income Tax (Appeals) [CIT(A)], who, on February 8, 2017, directed the Income Tax Department to release the refund with interest and adjustments.
  
• Despite the CIT(A) order, the refund was not issued, prompting him to file a writ petition under Articles 226 and 227 of the Constitution of India.

Delhi High Court Observations

As per the  Delhi High Court judgment ( W.P)(C)7438/2025) dated September 17 2025, here is what observation is  made by the court given below :

• The petitioner claimed a refund for four assessment years along with interest; the total amount due, as per counsel, is Rs 9,98,236.80.
  
• The Income Tax Department confirmed it had worked out the refund and would pay the amount, including interest, within eight weeks.
  
• The court directed that the refund amount be released within eight weeks, and the breakup of the said amount shall be provided within the same time period. 

• The court said that if the petitioner believes the payment is short, he can submit a representation to the Assessing Officer (AO) with justifications.
  
• AO to consider the representation and communicate a decision within four weeks.
  
• If still aggrieved, Mr Goel has the liberty to revive the writ petition with the AO’s order.
  

Conclusion

The Delhi High Court judgment reinforces that taxpayers are entitled not only to their income tax refund but also to interest for any delay, even for older assessment years. It serves as a reminder that the Income Tax Department is legally obligated to honour these claims. Taxpayers can proactively track their refunds, communicate with their Assessing Officer, and escalate matters to the Commissioner (Appeals). Additionally, interest under Section 244A of the Income Tax Act can be claimed for any delay, ensuring that taxpayers receive their rightful dues without unnecessary loss.