Income Tax Dept. Consents To Refund Rs 190 Crore To Vedanta Ltd For Assessment Year 2021-22

The income tax department will refund Rs 190 Crore to Vedanta Ltd for the 2021-22 assessment year, along with applicable interest. This decision came after a hearing in the Delhi High Court. 

The court ordered the refund and scheduled a follow-up on October 30 2023 to ensure compliance with the decision.

In August, Vedanta filed a complaint in the high court, claiming that the income tax department had not refunded the amount of over Rs 190.23 crore for the 2021-22 assessment year.

The company requested the revenue department to use this refund to offset an outstanding demand that the department had raised for the 2011-12 assessment year.

According to the sources, It is being said that the Bombay High Court's decision was linked to ongoing proceedings with an income tax tribunal for the 2009-10 assessment year. 

Although Vedanta had opposed that it had won the case for the 2009-10 assessment year up to the Bombay High Court, the Delhi High Court has asked the income tax department to respond to Vedanta's claims.

The tax department also provided assurance to the bench that it would investigate whether the amount, along with the relevant interest, should be refunded to Vedanta without making any adjustments.

Also Read: What is a Tax Audit? Understanding Tax Audits and Their Applicability

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