Tax authorities must adhere to statutory time limits when passing orders; failure results in entitlement to refunds and interest for taxpayers.

ORDER :

1. In this petition, the petitioner seeks the following reliefs:

“a) Directing the Respondents to forthwith refund an amount of Rs.3,78,59,031/- together with applicable interest, for the assessment year 2006-07; marked as Annexure-X1.

b) Directing the Respondents to forthwith refund an amount of Rs.45,53,45,565/- together with applicable interest, for the assessment year 2007-08; marked as Annexure-X2.

c) Directing the Respondents to forthwith refund an amount of Rs.4,56,99,570/- together with applicable interest, for the assessment year 2008-09; marked as Annexure-X3.

d) Pass such other or further orders as this Hon’ble court may deem fit in the facts and circumstances of the case, in the interests of justice and equity.”

2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3. Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of this Court in the case of M/s. Biesse India Pvt. Ltd. Vs. The Deputy Commissioner of Income Tax , W.P. No. 16223/2023 dated 05.02.2024 and confirmed by the Division Bench of this Court in The Deputy Commissioner of Income Tax Vs. M/s. Biesse India Pvt. Ltd. , W.A. No. 1619/2024 dated 05.08.2025.

4. In M/s. Biesse India Pvt. Ltd. Vs. The Deputy Commissioner of Income Tax , W.P. No. 16223/2023 dated 05.02.2024 case supra, it is held under:

“In this petition, petitioner seeks for the following reliefs:-

(A) Issue as far as the Petitioner is concerned an appropriate writ or order in the nature of Mandamus or otherwise, directing the Respondent to grant refund of Rs.4,73,27,390/- unlawfully adjusted against a non existing demand of Rs.4,02,20,200/- for the AY 2012-23 as stated in the refund application as enclosed in Annexure-A;

(B) Issue as far as the Petitioner is concerned an appropriate writ or order in the nature of Mandamus or otherwise, directing the Respondent to grant interest on refund of Rs.1,57,62,280/- as stipulated under Sections 244A(1) (b) for the AY 2012-13;

(C) Issue as far as the Petitioner is concerned an appropriate writ or order in the nature of Mandamus or otherwise, directing the Respondent to grant interest on refund of Rs.80,45,656/- as situated under Section 244A(1A) for the AY 2012-13;

(D) Grant such other reliefs as this Honourable High Court may think fit including the costs of this writ petition.

(E) Quash as far as the petitioner is concerned by an appropriate writ or order in the nature of Certiorari or otherwise, the order giving effect to the order of the Tribunal passed under Section 254 r.w.s. 143(3) dated: 23.08.2023 passed by the Respondent vide DIN No.ITBA/GEA/M/254/2023-24/1055377988 for the AY 2012-13, enclosed as Annexure-P.”

2. Heard learned Senior counsel for the petitioner and learned counsel for the respondent and perused the material on record.

3. The petitioner is a private limited company engaged in manufacturing and trading of wood working machine, components and related services. On 30.11.2012, the petitioner filed its returns declaring its total income as ‘nil’ for the assessment year 2012-13, pursuant to which, the respondent passed a final assessment order under Section 143(3) r/w 144-C(13) of the Income Tax Act, 1961 (for short ‘the I.T.Act’) dated 31.01.2017 and raised a demand under Section 156 of the I.T.Act. Aggrieved by the same, the petitioner filed an appeal before the ITAT which passed an order on 07.07.2017 by partly allowing the appeal and restoring the matter to the file of the respondent with a direction to work out the ALP and TP adjustment after excluding the said 5 companies selected by the TPO and al