Madras High Court Directs ITO to Consider Rs. 3L Income Tax Refund Claim for AY 2015-16

The Madras High Court has recently issued an order directing a taxpayer to file a fresh representation before the Income Tax Officer (ITO) seeking an income tax refund of Rs. 3 lakhs for the Assessment Year (AY) 2015-16. The refund claim is based on the tax paid on April 15, 2015, as reflected in Form 16, and the petitioner sought relief in line with earlier High Court orders passed in similar matters involving other employees.

The petitioner, Thirumalai Ramesh S, along with 38 co-employees, had initially made a joint representation through a colleague, Mr. J. Rufus Dhennathayalam, on July 22, 2024. However, since the department failed to act on the said representation, the petitioner approached the High Court seeking a writ of mandamus for the refund along with applicable interest for the delay.

During the hearing, the counsel for the Income Tax Department informed the Court that the petitioner may submit a fresh individual representation, which would be duly forwarded to the appropriate authorities for redressal. The bench of Justice Krishnan Ramasamy, noting the limited nature of relief sought and without delving into the merits of the case, accepted the department’s submission.

The High Court directed the petitioner to file a fresh representation before the ITO. Upon receipt of the representation, the ITO has been instructed to forward it to the concerned authorities, who shall consider and act upon the representation within six weeks.

Mr. J. Nagarajan appeared for the petitioner, and Dr. B. Ramaswamy, Senior Standing Counsel, appeared for the department. This decision is expected to provide clarity and a pathway for similar cases involving employees seeking income tax refunds.

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