M/S PRAHLAD RAI AGRAWAL vs. UNION OF INDIA

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WPT/206/2021HC ChhattisgarhCGHC01027290202116 August 2026Bench: HON'BLE SHRI JUSTICE RAKESH MOHAN PANDEY3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition based on the submissions made by both parties and a letter dated 17.08.2026 issued by the Central Circle 1, Bilaspur. The Court directed the competent authority, who issued the letter dated 17.08.2026, to take an appropriate decision pursuant to that letter expeditiously and strictly in accordance with law. The judgment does not explicitly detail the findings on the specific claims for refunds and interest, but rather remits the matter for expeditious decision by the authority. No specific issue was left undecided, as the petition was disposed of with a direction for action.

What were the facts?

The petitioner, M/s Prahlad Rai Agrawal, filed a writ petition before the High Court of Chhattisgarh at Bilaspur seeking directions for the issuance of due refunds, along with interest as per Section 244A of the Income Tax Act, 1961, and additional interest. The respondents, including the Union of India and various income tax authorities, indicated that the petitioner had claimed a refund. A letter was issued to the petitioner requesting their appearance before the competent authority for the settlement of issues and refund of excess amounts. The petitioner's counsel endorsed the submissions made by the respondents' counsel.

What were the issues?

1. Whether the respondents should be directed to issue all due refunds immediately to the petitioner, along with interest at the rate of one half percent per month or part thereof from the date of tax payment to the refund grant date, as per Section 244A of the Income Tax Act, 1961. 2. Whether the respondents should be directed to pay additional interest at the rate of 3% per annum for the period commencing after three months from the end of the month in which the refund order was received by the respondents until the date of refund issuance. Assessee's Contentions: The petitioner sought directions for immediate refund issuance and payment of statutory and additional interest. The petitioner's counsel endorsed the submissions made by the respondents' counsel. Revenue's Contentions: The respondents submitted that a letter had been issued to the petitioner to appear before the competent authority for settlement of issues and refund of excess amount along with interest in accordance with law. They further stated that if the petitioner appeared, an appropriate decision would be taken strictly in accordance with law.

Which sections of the Income-tax Act were involved?

Section 244A

AI-generated summary — verify with the full judgment below

CGHC010272902021

2026:CGHC:36587

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPT No. 206 of 2021 1 - M/s Prahlad Rai Agrawal Nehru Park Road, Surajpur, P.S. Tahsil And District Surajpur (Chhattisgarh) Pin 497229, District : Surajpur, Chhattisgarh

... Petitioner versus 1 - Union Of India Through Secretary, Central Board Of Direct Taxes, North Block, New Delhi. 2 - The Director General Of Income -Tax (Investigation), Aaykar Bhawan, Hoshangabad Road, Bhopal (Madhya Pradesh), District : Bhopal, Madhya Pradesh 3 - The Principal Commissioner Of Incom-Tax (Central) Aaykar Bhawan, Hoshangabad Road, Bhopal (Madhya Pradesh), District : Bhopal, Madhya Pradesh 4 - The Joint Commissioner Of Income-Tax Aaykar Bhawan, Civil Lines, Raipur (Chhattisgarh), District : Raipur, Chhattisgarh 5 - The Assistant Commissioner Of Income-Tax-1 Income-Tax Office, Mahima Complex, Vyapar Vihar, Bilaspur (Chhattisgarh), District : Bilaspur, Chhattisgarh

---- Respondents For Petitioner

: Ms. Monika Singh, Advocate holding the brief of Mr. S. Rajeswara Rao, Advocate For respondents No.2 : Mr. Ajay Kumrani, Advocate holding the to 5 brief of Mr. Amit Choudhary, Advocate Hon'ble Shri Justice

Rakesh Mohan Pandey

Order on Board

-2- 17.08.2026 1. The petitioner has filed this petition seeking following relief(s) : “(i) to call for relevant records of the respondents for its kind perusal. (ii) to direct respondents to issue all due refunds immediately. (iii) to direct respondents to pay interest at the rate of one half percent for every month or part thereof from the date of payment of tax to the date on which the refund is granted as per provisions of section 244A of the Act. (iv) to direct respondents to pay additional interest at the rate of 3% per annum for the period starting after three months from the end of the month in which the order arising refund was received by the respondents till the date of issue of refund. (v) to direct respondents to pay costs of Rs.25,000/- towards costs of this petition for constraining the petitioner to re-approach the Hon'ble High Court. (vi) to pass such other and/or further order and/or orders as the Hon’ble High Court may deem fit and proper in the facts and circumstances of the case.” 2. At the very outset, Mr. Kumrani, learned counsel appearing for respondents No.2 to 5 would submit that the petitioner has claimed refund of Income Tax and in this regard, a letter has been issued to the petitioner to appear before the competent authority for settlement of issue and refund of excess amount along with interest in accordance with law. 3. Mr. Kumrani, Advocate would submit that if the petitioners would appear before the authority concerned, appropriate decision would be taken by the said authority strictly in accordance with law. 4. Ms. Singh, learned counsel appearing for the petitioner would

endorse the submissions made by Mr. Kumrani. 5. I have heard the learned counsel appearing for the parties and perused the documents placed on record. 6. Taking into consideration the submissions advanced by respective Advocates and letter dated 17.08.2026 issued by the Central Circle 1, Bilaspur, this petition is disposed of. The competent Authority who issued a letter dated 17.08.2026 is directed to take appropriate decision pursuant to letter dated 17.08.2026 expeditiously strictly in accordance with law.

Sd/-

(Rakesh Mohan Pandey)

Judge Rekha

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