Alkem Laboratories Limited V. The Deputy Director of Income Tax

CWJC/13163/2023

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In this case, Alkem Laboratories Limited, represented by its Regional Director Ashok Kumar, filed a writ petition against the Deputy Director of Income Tax, Centralized Processing Centre, Bangalore. The petitioner challenged an intimation order under Section 143(1) of the Income Tax Act, which significantly adjusted the income reported by the petitioner, leading to a substantial difference in the computed and returned income. During the proceedings, it was noted that the respondent had processed the petitioner's refund along with interest, but the petitioner sought redress due to the delay and the manner of the adjustment. The court, acknowledging the unnecessary harassment faced by the petitioner, imposed a cost on the respondent while disposing of the writ petition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 746639 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 05-03-2025
• Assessment Year: misc
• Laws Referred To: Companies Act, 1956, Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ARCHANA SINHA
• Assessee Lawyers: AJAY KUMAR RASTOGI; SMRITI SINGH; ANUBHAV KHOWALA
• Keywords: Fairplay; Income computation; Intimation Order; Natural Justice; Writ of Certiorari
• Section: 143(1)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.13163 of 2023 ====================================================== Alkem Laboratories Limited, a Limited Company incorporated under the Companies Act, 1956, having its office at Exhibition Road, Patna G.P.O., P.S. Gandhi Maidan in the town and District of Patna through its Regional Director, Ashok Kumar, son of Late Lalan Kumar Singh, aged about 57, resident of F-145, P.C. Colony, Kankarbagh, Patna-800020, P.O. and P.S.- Kankarbagh, District-Patna. ... ... Petitioner. Versus 1. The Deputy Director of Income Tax, Centralized Processing Centre, Income Tax Department, Bangalore-560 500. ... ... Respondent. ====================================================== Appearance : For the Petitioner : Mr. Ajay Kumar Rastogi, Senior Advocate. Ms. Smriti Singh, Advocate. Mr. Anubhav Khowala, Advocate. For the Respondent : Ms. Archana Sinha @ Archana Shahi, Senior Advocate. ====================================================== CORAM: HONOURABLE MR. JUSTICE P. B. BAJANTHRI and HONOURABLE MR. JUSTICE SUNIL DUTTA MISHRA ORAL JUDGMENT (Per: HONOURABLE MR. JUSTICE P. B. BAJANTHRI) Date : 05-03-2025 In the instant writ petition, petitioner has prayed for the following relief(s): “(i) For issuance of writ of certiorari or any other appropriate writ, order or direction quashing the intimation order under Section 143(1) dated 29.07.2023 passed by the Deputy Director of Income Tax, CPC, Bangalore (Respondent no.1), whereby the income of the appellant has been computed at Rs.2662,45,70,910/- as against returned income of Rs.515,17,04,850/- and thereby Patna High Court CWJC No.13163 of 2023 dt.05-03-2025 2/3 making adjustment of Rs.2147,28,66,060/-, as the said intimation order under Section 143(1) is contrary to the mandatory provisions of first and second proviso to Section 143(1) and is wholly arbitrary and illegal besides it being passed in blatant violation of principles of natural justice and fairplay. (ii) For issuance of any other writ, order or direction which your Lordships may deem fit and proper in the facts and circumstances of the case. 2. During the pendency of the present lis, petitioner’s due amount of Rs.33 crores to be refunded by the respondent were disbursed in the following manner: “A sum of Rs.23 Crores in the month of August, 2024, Rs.47 Lacs in the month of December, 2024, Rs.26.73 Lacs in the month of December, 2024 and Rs.9 Crores and 63 Lacs on 21.01.2025 along with interest on belated refund of the petitioner’s due has been paid.” 3. Therefore, nothing remains in the present lis. Be that as it may, the Tax Payer has been unnecessarily harassed and compelling the petitioner to invoke remedy before this Court insofar as seeking financial due to him and made him to wait for more than one year. No doubt, interest has been paid to Patna High Court CWJC No.13163 of 2023 dt.05-03-2025 3/3 him, however, cost of the litigation is warranted in the present case. We propose to impose cost of Rs.50,000/-(Rupees Fifty Thousand). Cost shall be remitted in the Lawyers’ Association Welfare Benevolent Fund having Bank Account No.7801893276, IFSC Code-IDIB000L501, within a period of four months from the date of receipt of this order. 4. With the above observations, instant writ petition stands disposed of. 5. Pending Interlocutory Application(s), if any, stands disposed of. P.S./- (P. B. Bajanthri, J) ( Sunil Dutta Mishra, J) AFR/NAFR NAFR CAV DATE NA Uploading Date 06.03.2025. Transmission Date NA "