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IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
B. R. Arora And Associates Pvt. Ltd. – Appellant
Versus
Dcit, Circle – 4(2), Delhi – Respondent
W.P.(C) 9542 of 2023 & CM Appl. 36511 of 2023
Decided On : 20-07-2023
Refund - Income Tax - The court directed the concerned authority to deal with the rectification application for refund at the earliest and ordered that if refund is due, the amount should be remitted within three weeks of the order being passed by the statutory authority.
Fact of the Case:
The petitioner sought refund for Assessment Year 2010-11 and 2020-21, claiming that the amount refunded was less than entitled and that the refundable amount for 2020-21 was wrongly adjusted towards a non-existent demand for 2010-11.
Finding of the Court:
The court directed the concerned authority to deal with the rectification application for refund at the earliest and ordered that if refund is due, the amount should be remitted within three weeks of the order being passed by the statutory authority. The writ petition was disposed of in the aforesaid terms.
Issues: Refund entitlement for Assessment Year 2010-11 and 2020-21, wrongful adjustment of refundable amount, and non-dealing of rectification application by the concerned authority.
Ratio Decidendi: The court emphasized the need for the concerned authority to promptly address the rectification application for refund and ensure timely remittance of the refund amount if due.
Final Decision: The court directed the concerned authority to deal with the rectification application for refund at the earliest and ordered that if refund is due, the amount should be remitted within three weeks of the order being passed by the statutory authority. The writ petition was disposed of in the aforesaid terms.
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral):
1. Issue notice.
1.1. Mr Sanjay Kumar, learned senior standing counsel, accepts notice on behalf of the respondent/revenue.
2. Given the directions that we propose to issue, Mr Kumar says that he does not wish to file a counter-affidavit and he will argue the matter based on the record presently available with the court.
2.1. Therefore, with the consent of learned counsels for the parties, the matter is taken up for hearing and final disposal at this stage itself.
3. Mr P. Roy Chaudhuri, who appears on behalf of the petitioner, says that the petitioner has two grievances.
3.1. First, that refund for Assessment Year (AY) 2010-11 pursuant to the order of the Income Tax Appellate Tribunal [in short, "Tribunal"] dated 23.12.2020 has been partially remitted. It is stated that the petitioner was entitled to refund of Rs.58,06,170/- along with statutory interest, whereas the amount refunded was only Rs.32,12,880/-.
3.2. Second, the amount refundable for AY 2020-21, i.e., Rs.4,14,950/- has been wrongly adjusted towards a non-existent demand for AY 2010-11.
4. Thus, in effect, the petitioner claims refund of Rs.30,08,240/- which is a sum total of the amount the petitioner is yet to be remitted after the partial refund i.e., Rs.25,93,290/- and the wrong adjustment made in AY 2020-21 of an amount equivalent to Rs.4,14,950/-.
5. It is the petitioner's case that several representations have been made in this behalf. In this context, reference is made to communications dated 12.11.2021, 17.11.2021, 25.12.2021, 25.01.2022 and 19.05.2022.
6. Mr Chaudhuri says that the petitioner has also filed a rectification application dated 06.06.2022, which has not been dealt with by the concerned officer as yet.
7. Given the aforesaid position, according to us, the best way forward would be to direct the concerned authority to deal with the rectification application dated 06.06.2022, at the earliest.
7.1. Mr Sanjay Kumar says that he cannot have an objection to a direction being issued in that behalf.
7.2. It is ordered accordingly.
8. The concerned authority will dispose of the rectification application dated 06.06.2022 at the earliest, though not later than six (6) weeks from the date of receipt of a copy of the judgment rendered today.
9. It is made clear that, in case refund is due, the said amount will be remitted within three (3) weeks of the order being passed by the statutory authority.
10. The writ petition is disposed of, in the aforesaid terms.
11. Parties will act based on the digitally signed copy of the judgment.
Prompt addressing of rectification application for refund and timely remittance of refund amount if due.
The obligation of the Assessing Officer to pass a speaking order in response to the petitioner's communication regarding the reconciliation of refund figures.
Timely disposal of rectification applications and examination of the viability of reliefs sought.
The court emphasized the importance of following the regime set forth in Section 245 of the Income Tax Act, 1961, and upheld the petitioner's right to seek an appropriate remedy if aggrieved by the d....
The central legal point established in the judgment is the importance of expeditious disposal of appeals and compliance with court directions in matters related to refunds and recovery proceedings.
The court held that the best course is to remit matters to the Assessing Officer for a speaking order rather than filing for rectification when significant time has passed.
The court has the authority to direct the revenue to remit disputed refund amounts and grant liberty to file a rectification application for differences in refund amounts under the Income Tax Act, 19....
The main legal point established in the judgment is that the adjustment made by the Assessing Officer must comply with the stipulated percentage of the disputed demand as per the relevant provisions ....
The central legal point established in the judgment is the court's direction to the CBDT to consider the petitioner's alternatives for addressing the inadvertent capture of self-assessment tax agains....
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