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IN THE HIGH COURT OF DELHI
Rajiv Shakdher, Talwant Singh, JJ.
Anil Kumar Jain - Appellant
Versus
Assistant Commissioner of Income Tax Circle 38(1) - Respondent
W.P.(C) 11045 of 2021
Decided On : 08-10-2021
| Table of Content |
|---|
| 1. transfer of matter and consent for hearing. (Para 1 , 2) |
| 2. petitioner's grievance regarding refund and interest. (Para 3) |
| 3. suggestion to remit matter to the assessing officer. (Para 4) |
| 4. directions for the assessing officer's action. (Para 5 , 6 , 7) |
JUDGMENT
Rajiv Shakdher, J.: (ORAL)
[Physical Court Hearing]
1. This matter has been received on transfer.
2. With the consent of parties, the writ petition is taken up for hearing and final disposal, at this stage itself.
3. In effect, the petitioner is aggrieved by the failure of the respondents/revenue in not refunding Rs. 3,09,520/-, which, according to him, has been retained illegally, after adjusting the tax and penalty due, out of the money seized by them i.e., Rs. 1,13,50,000/-.
3.1 The petitioner also seeks interest on the aforementioned retained amount.
3.2 The prayer made in the writ petition is, broadly, on the same lines..
4. Mr. Sanjay Kumar, who appears on advance notice on behalf of the respondents/revenue, says that, the petitioner, ordinarily, should have moved an application for rectification under Section 154 of the Income Tax Act, 1961 but having regard to the fact that, several years have passed since the adjustment was made, the best course would be to remit the matter to the Assessing Officer (AO) with a direction to pass a speaking order, qua the grievances articulated by the petitioner in the writ petition.
4.1. In our view, given the circumstances obtaining in the case, that, indeed, would be the best way forward.
5. Accordingly, the writ petition is disposed of with the following directions:-
(i) The writ petition will be treated as the petitioner's representation/application.
(ii) The AO, after hearing the petitioner and/or his authorised representative, will pass a speaking order. This exercise will be completed by the AO at the earliest, though not later than 6 weeks from the date of the receipt of a copy of this order.
(iii) The petitioner will file a copy of the writ petition along with the annexures appended herein, with the AO.
(iv) The AO will issue a prior written notice to the petitioner, indicating the date and time for hearing. The AO will have the discretion to hear the petitioner and/or his authorised representative, via video-conferencing mechanism.
5.1. In case, the order passed by the AO is adverse to the interest of the petitioner, he will have the liberty to take recourse to an appropriate remedy, albeit, as per law.
6. Parties will act on the digitally signed copy of this order.
7. The case papers shall stand consigned to record.
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....
Prompt addressing of rectification application for refund and timely remittance of refund amount if due.
Interest on refunds is warranted from the date of valid application in cases where the authority does not contest the claim, reinforcing the principle of compensation for delayed access to owed funds....
Once a refund is quantified under Section 143(1), the Revenue must release it unless a valid order under Section 241A is issued; mere issuance of a scrutiny notice does not suffice.
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 obligation of the Assessing Officer to pass a speaking order in response to the petitioner's communication regarding the reconciliation of refund figures.
The court ruled on the application of Articles 226 and 227 regarding interim tax relief, emphasizing that disputed tax demands require careful judicial consideration and timely hearings.
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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