Income Tax refund order: The Income Tax Department ‘s delay in issuing tax refunds has proven costly. In one case, the Delhi High Court has ordered the department not only to release the taxpayer’s pending refund, but also to pay hefty interest on it. This case concerns a Mr. Goyal, who had to fight a legal battle for years to get his money back. Now, following the court’s order, he will receive a total of Rs 9.98 lakh.
What is the whole matter?
This case involves multiple assessment years. Goyal was due a refund of Rs642,710 from the Income Tax Department for assessment years 2007-08, 2015-16, 2017-18, and 2018-19. However, the department failed to pay this amount on time. Due to the years of delay, interest of Rs 355,526.80 accrued on this refund. Now, the taxpayer will receive a total of Rs 998,236.80, including interest and principal.
Long fight for refund
Goyal first filed a case with the Commissioner of Appeals (CIT-A) to receive a refund. On February 8, 2017, the CIT(A) ruled in his favor and directed the department to issue the refund along with interest. Despite this, when the Income Tax Department did not release the money, he was forced to approach the Delhi High Court. He filed a petition under Articles 226 and 227 of the Constitution. He was represented in the High Court by lawyers Himanshi Goyal and Mayank Sharma.
What order did the High Court give?
During the hearing in the Delhi High Court, the Income Tax Department’s lawyer acknowledged that the taxpayer would be paid the refund amount along with interest. He assured the court that the full amount would be paid within eight weeks. In its decision (WP(C) 7438/2025) dated September 17, 2025, the court clearly stated that the payment deadline would remain eight weeks and that the taxpayer would be provided with a complete breakdown of the amount paid.