The Bombay High Court has spotlighted the persistent issue of delayed tax refunds, emphasizing how these setbacks unnecessarily inflate the financial burden on the public exchequer through accumulating interest payments.
During a hearing related to refunds claimed by Bloomberg Data Services (India) Pvt. Ltd. for assessment years 2013-14 and 2016-17, the court delivered sharp remarks about the consequences of such inefficiencies.
“Refunds due to taxpayers, once determined and uncontested, must be promptly issued. Delays only burden the public and erode trust in the system,” observed the bench comprising Justices G. S. Kulkarni and Advait M. Sethna.
The petition brought by Bloomberg challenged the withholding of a ₹77.64 crore refund, which was partially adjusted only after court intervention. Yet, interest payments of ₹3.10 crore for the delayed years remain pending. The court noted this pattern of administrative sluggishness as symptomatic of broader systemic lapses.
Bloomberg argued that the delays have not only harmed its financial standing but also compounded costs for the government. Their counsel highlighted the need for timely refunds, particularly when no disputes or further actions justify withholding them.
The court urged the Revenue Department to expedite the release of pending amounts and called for accountability measures to address recurring inefficiencies. It suggested framing or enforcing robust rules to prevent such delays and imposing consequences on officials responsible for negligence.
This case underscores the dual impact of such delays—on taxpayers waiting for rightful dues and on a government saddled with avoidable interest liabilities. A detailed status update from the tax authorities is anticipated in the next hearing on December 10.
Bloomberg_Data_Services_v_The_Deputy_Commissioner_of_Income_Tax_
