{"id":372358,"date":"2026-01-12T16:30:05","date_gmt":"2026-01-12T11:00:05","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=372358"},"modified":"2026-01-13T17:33:48","modified_gmt":"2026-01-13T12:03:48","slug":"del-hc-8-year-delay-income-tax-refund-to-microsoft","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/01\/12\/del-hc-8-year-delay-income-tax-refund-to-microsoft\/","title":{"rendered":"Delhi HC slams Income Tax Department for 8-Year delay in Refund to Microsoft; orders refund of \u20b95.37 Crore with interest"},"content":{"rendered":"
\n

Delhi High Court:<\/span> In a writ petition filed by assessee, Microsoft Corporation, along with applicable interest, arising from Fringe Benefit Tax, a Division Bench of Dinesh Mehta*<\/span> and Vinod Kumar, JJ., while expressing shock for “not paying the refundable amount to an assessee for eight years,”<\/span> directed the respondents to pay refund to Microsoft along with applicable interest, including interest under Section 244-A(1A)<\/a> of the Income Tax Act, 1961<\/a> (Income Tax Act).<\/p>\n

The petitioner placed reliance on a communication dated 16.06.2017 issued by the Additional Commissioner of Income Tax, Special Range-6, New Delhi, wherein the Assessing Officer had found amounts of Rs. 6,94,56,509\/- and Rs. 5,37,77,310\/- as payable to the petitioner. While the amount of Rs. 6,94,56,509\/- was later refunded, the sum of Rs. 5,37,77,310\/- remained unpaid.<\/p>\n

The petitioner submitted that the Assessing Officer was merely waiting for a refund adjustment challan and that the respondents had taken more than eight years to carry out the ministerial work, and the amount had not been paid even till the date of hearing.<\/p>\n

The petitioner further asserted entitlement not only to the refund amount but also to interest under Section 244 and Section 244A(1A)<\/a> of the Income Tax Act<\/a>, and sought imposition of exemplary costs.<\/p>\n

The Court expressed strong displeasure over the conduct of the Income Tax Department and stated that the officers of the Department have been “callous towards petitioner’s grievance”.<\/span> The Court stated that “not paying the refundable amount to an assessee for eight years is shocking and is an issue which should have pricked the conscience of the officers at the helms of affairs.”<\/span><\/p>\n

The Court found the prayer for twelve weeks’ time to be “an unreasonable prayer and shows that they take not only the citizen but even the High Court for granted.”<\/span>The Court also noted with concern that even after filing of the writ petition, the amount had not been refunded.<\/p>\n

The Court allowed the writ petition and issued following directions —<\/p>\n

    \n
  1. \n

    The respondents shall pay the refund to Microsoft of entire amount of Rs. 5,37,77,310\/- along with applicable interest, including interest under Section 244A(1A)<\/a> of the Income Tax Act, 1961<\/a>,<\/p>\n<\/li>\n

  2. \n

    The payment shall be made latest by 15-02-2026 into the petitioner’s HSBC Bank account.<\/p>\n<\/li>\n

  3. \n

    In case of failure to make payment by the stipulated date, Respondent 1 (Deputy Commissioner of Income Tax) shall personally pay costs of Rs. 1,00,000\/- from his own pocket.<\/p>\n<\/li>\n<\/ol>\n

    [Microsoft Corporation India (P) Ltd.<\/span> v. CIT<\/span>, 2026 SCC OnLine Del 83<\/a>, Decided on 06-01-2026<\/span>]<\/p>\n

    *Judgment by Justice Dinesh Mehta<\/span><\/strong><\/p>\n\n

    Advocates who appeared in this case:<\/p>\n

    Mr. Nageswar Rao, Mr. Parth and Mr. Pratik Rath, Counsel for the Petitioner<\/p>\n

    Mr. Shlok Chandra, Sr. Standing Counsel, Ms. Madhavi Shukla, Jr. SC, Ms. Naincy Jain, Jr. SC and Mr. Udit Dad, Counsel for the Respondent<\/p>\n

    Mr. P.S. Singh, CGSC with Mr. Ashutosh Bharti, Ms. Minakshi Singh and Mr. Rajeesh Kumar Sharma, Counsel for the Union of India<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Income Tax Department officers’ “utterly negligent attitude” compelled the petitioner to approach the Court.<\/p>\n","protected":false},"author":67514,"featured_media":372359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[96658,2543,96655,13081,96654,66819,95917,53606,96659,96656,96657],"class_list":["post-372358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-arbitrary-delay","tag-Delhi_High_Court","tag-fringe-benefit-tax","tag-income-tax-act","tag-income-tax-refund","tag-justice-dinesh-mehta","tag-justice-vinod-kumar","tag-microsoft-corporation","tag-personal-costs-on-officer","tag-section-244-a","tag-tax-refund-interest"],"yoast_head":"\nDel HC shocked at 8-year delay in ITR refund to Microsoft | SCC Times<\/title>\n<meta name=\"description\" content=\"While condemning an 8-year delay, Delhi High Court directs the Income Tax Department to \u20b95.37 Crore refund to Microsoft with statutory interest.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/01\/12\/del-hc-8-year-delay-income-tax-refund-to-microsoft\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delhi HC slams Income Tax Department for 8-Year delay in Refund to Microsoft; 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