HARYANA STATE CO-OPERATIVE APEX BANK LTD. V. UNION OF INDIA AND ORS.

CWP/6797/2017

AI Insights

The case involves the Haryana State Co-operative Apex Bank Ltd. petitioning under Articles 226/227 of the Constitution of India against the Union of India and others, challenging the adjustment of tax refund amounts against outstanding demands for subsequent years. The petitioner sought a writ of certiorari to quash the notice dated 24/26.03.2017, which proposed the adjustment of refunds for the earlier years against the demands for the years 2010-11 to 2014-15 without interest. The court examined the details of the refunds and adjustments made by the tax authorities and found that the adjustments were correctly made as per the provisions of the Income Tax Act, particularly Section 244-A, which deals with interest on delayed refunds.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 722779 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 20-09-2017
• Assessment Year: misc
• Laws Referred To: Constitution of India, Income Tax Act 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: YOGESH PUTNEY
• Assessee Lawyers: SAHIL CHADDER
• Keywords: Adjustment of Refund; Assessment years; Income Tax Refund; Writ of Certiorari; Writ of Mandamus
• Section: 226; 227; 244(A)

Judgement Text

"CWP-6797-2017 1 249 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-6797-2017 Date of decision : 20.09.2017 The Haryana State Co-operative Apex Bank Ltd. ... Petitioner(s) Versus Union of India and others ... Respondent(s) CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE AMIT RAWAL Present: Mr. Sahil Chadder, Advocate for Mr. Maninder Arora, Advocate for the petitioner. Mr. Yogesh Putney, Sr. Standing Counsel, for the respondent(s)-Revenue. **** AJAY KUMAR MITTAL , J. (ORAL) The petitioner has approached under Articles 226/227 of the Constitution of India for issuance of writ in the nature of certiorari, quashing the impugned letter/notice dated 24/26.03.2017 issued by respondent No.3, whereby, the respondents have agreed to adjust the amount of refund for the Assessment Years 1995-1996, 1996-1997 & 1997- 98, but without any interest accrued thereon against the demand created qua Assessment Years 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15, respectively. A further writ of mandamus has been sought directing the respondent(s)-Authorities to adjust the amount of refund assessed along with interest from the date it became due for the Assessment Years 1995-96, 1996-97 & 1997-98 subject to finality of the litigation. Yogesh Sharma 2017.09.29 13:00 I attest to the accuracy and integrity of this document CWP-6797-2017 2 2. Upon notice having been issued, learned counsel for the respondents has produced a communication dated 15.09.2017, giving the following details with regard to the status of refund amount of income tax together with interest under Section 244-A of the Income Tax Act 1961: Sr. No. A.Y. Amount of refund Claimed (in ` ` ` ` ) Remarks Action Taken 1 1995-96 1,32,16,211 Refund plus interest amounting to ` ` ` ` 1,49,67,413/- already determined and adjusted in the demand of A.Y. 1997-98 on 03.06.1998. Further on 11.09.1998 a refund amounting to ` ` ` `18,26,153/- plus interest amounting to ` ` ` `1,15,569/- totaling to ` ` ` `19,41,722/- issued to the assessee. Hence further no refund pending to the assessee in this A.Y. i.e. A.Y. 1995-96 No refund pending 2 1996-97 1,92,58,730 Refund plus interest amounting to ` ` ` `1,67,46,722/- plus interest ` ` ` `25,12,008/- totaling to ` ` ` `1,92,58,730/- already determined and adjusted in the demand of A.Y. 1997-98 on 11.09.1998. Hence further no refund pending to the assessee in this A.Y. i.e. A.Y. 1996-97. No refund pending 3 1997-98 1,77,87,104 Refund amounting to ` ` ` `1,77,87,104/- has been claimed by the assessee. The letter contains only single copy of return acknowledgement which show that the assessee has claimed refund amounting to ` ` ` `1,77,87,104/- copy of TDS certificates has been furnished by the assessee on 16.06.2017, as the same was required to made verification of tax deducted on sources Refund issued amounting to ` ` ` `12,14,17,380/- along with interest u/s 244A and adjusted in Demand from A.Y. 2010-11 to 2014-15 4 2000-01 29,67,616 TDS verification letter had been written to RBI by Income Tax Officer, Ward-1, Panchkula on 07.12.2001 & 24.01.2002. In its reply, RBI denied to deduct any TDS of M/s Haryana State Cooperative Apex Bank Limited No refund can be given as the TDS has not been verified by RBI, New Delhi Yogesh Sharma 2017.09.29 13:00 I attest to the accuracy and integrity of this document CWP-6797-2017 3 5 2001-02 4,24,048 No refund pending for this A.Y. The refund claimed amounting to ` ` ` `1,48,76,823/- plus upto date interest amounting to ` ` ` `16,73,642/- totaling to ` ` ` `1,65,00,465/- had been determined and issued to the assessee out of which refund amounting to ` ` ` `20,97,690/- had been adjusted against the demand of A.Y. 2000-01 No refund pending 6 2002-03 32,11,628 TDS Verification sought from RBI vide letter dated. Verification pending at RBI end TDS Verification pending 7 2004-05 26,47,890 No refund pending in this A.Y. Refund claim of ` ` ` `1,49,93,617/- plus interest amounting to ` ` ` `14,24,392/- totalling to ` ` ` `1,49,18,009/-. Out of which ` ` ` `26,47,840/- had been adjusted against the demand of A.Y. 2003- 04 No refund pending 8 2005-06 9,12,193 Verification partly made from deductor. Refund of ` ` ` ` 12,87,760/- has been determined and adjusted against the outstanding demand for the A.Y. 2011-12 (The verification of TDS from SIDBI has not been received) Refund issued and adjusted in A.Y. 2011-12 Demand 9 2006-07 7,51,740 Verification made from deductor refund of ` ` ` ` 12,55,406/- has been determined and adjusted against the outstanding demand for the A.Y. 2011-12. Refund issued and adjusted in A.Y. 2011-12 Demand 3. In view of above, it was submitted that no amount of refund is pending in respect of the Assessment Years 1995-96 and 1996-97. It was further submitted that against the refund for the Assessment Year 1997-98, an amount of ` ` ` `12,14,17,380/- along with interest under Section 244-A of the Income Tax Act, has been adjusted in respect of Demand from Assessment Years 2010-11 to 2014-15. The copy of the aforesaid communication is taken on record. 4. A further communicated dated 18.09.2017 has been produced in Court, wherein, it has been submitted that certain amount is actually due Yogesh Sharma 2017.09.29 13:00 I attest to the accuracy and integrity of this document CWP-6797-2017 4 from the assessee and the copy of the same is taken on record. 5. In view thereof, the present writ petition is disposed of as infructuous. However, liberty is granted to the petitioner to file an appropriate application for revival of the writ petition in case something survives therein. ( AJAY KUMAR MITTAL ) JUDGE 20.09.2017 Yogesh Sharma ( AMIT RAWAL) JUDGE Whether speaking/reasoned Yes/ No Whether Reportable Yes/ No Yogesh Sharma 2017.09.29 13:00 I attest to the accuracy and integrity of this document "