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On January 6, 2026, the Delhi High Court expressed shock at the Income Tax Department as a taxpayer, had to wait 8 years for getting their tax refund despite the tax department admitting that this refund was due back in 2017.
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Justice Dinesh Mehta and Vinod Kumar of Delhi High Court said that they are of the firm view that the officers of the Income Tax Department have shown a lack of concern towards the petitioner’s (taxpayers) complaint as they did not pay any heed to the petitioner’s grievance.
Delhi High Court said: “Not paying the refundable amount to an assessee (Microsoft) for eight years is shocking and is an issue which should have pricked the conscience of the officers at the helms of affairs.”
Also read: Income Tax refund delay: Why refunds for FY 2024-25 ITR filings are taking longer and what you can do
Why this huge delay for income tax refund?
Advocates Nageswar Rao, Parth and Pratik Rath represented Microsoft (assessee, taxpayer, petitioner) before Delhi High Court. The advocates told the court that a communication dated June 16, 2017, said that the Additional Commissioner of Income Tax, Special Range 6, New Delhi has found an amount of Rs 6.94 crore and Rs 5.37 crore as payable to Microsoft. He submitted that Rs 5.37 crore has not been refunded though the amount of Rs 6.94 crore was paid later.
He submitted that the communication dated June 16, 2017 indicates that the Assessing Officer was waiting for the refund adjustment challan and respondents have taken more than eight years to carry out the ministerial work and the amount has not been paid till date.
Mr. Shlok Chandra, learned Senior Standing Counsel, on instructions, submitted that the Assessing Officer has assured him that the necessary payment shall be made along with applicable interest within 12 weeks.
Delhi High Court raps income tax department
Delhi High Court in its judgement (case no. 2026: DHC-85-DB) dated January 6, 2026, said that because of their (tax department’s) utterly negligent attitude, the petitioner (Microsoft, taxpayer) had to approach this Court for getting a tax refund arising from the orders passed by the Authorities.
Delhi High Court said: “It is painful to learn that in spite of the writ petition, even till today, the petitioner (Microsoft) has not been paid the amount. The respondents’ (tax department) prayer for granting twelve weeks’ time even today is an unreasonable prayer and shows that they take not only the citizen but even the High Court for granted.”
Judgement:
- The petition is, therefore, allowed.
- Respondents are directed to pay the entire amount (Rs 5,37,77,310) along with applicable interest, including interest given under Section 244A(1A) of the Income Tax Act, 1961 latest by 15.02.2026. The amount be paid/deposited in petitioner’s bank account i.e. HSBC Bank.
- In case the requisite amount, along with interest as indicated above, is not paid by 15.02.2026, respondent No. 1 i.e. Deputy Commissioner of Income Tax shall have to pay costs of Rs 1,00,000 to the petitioner, which cost shall be paid by him personally i.e. from his own pocket.
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