HERO MOTOCORP LTD V. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 27 DELHI & ANR.

W.P.(C)/4066/2025

AI Insights

Hero MotoCorp Ltd filed a writ petition against the Deputy Commissioner of Income Tax, Central Circle 27, Delhi, seeking directions for the issuance of an appeal effect order and a refund of taxes paid for the Assessment Year 2011-12. The dispute arose from a reassessment order that added ₹3644.85 crores to the petitioner's income, leading to a tax demand of ₹2336.70 crores. After unsuccessful appeals to the CIT(A), the ITAT ruled in favor of the petitioner, setting aside the tax demand. Despite this, the revenue authorities did not issue the required appeal effect order or process the refund. The High Court, after considering the circumstances, issued directions to the revenue authorities to comply with the legal requirements promptly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 766062 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 01-04-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GAURAV GUPTA; SHIVENDRA SINGH; YOJIT PAREEK
• Assessee Lawyers: AJAY VOHRA; DEEPESH JAIN; SAMARTH CHAUDHARI
• Keywords: Appeal Effect Order; Income Tax; ITAT; Reassessment; Refund
• Section: 143(3)

Judgement Text

"$~93 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 4066/2025 CM APPL. 18909/2025 HERO MOTOCORP LTD .....Petitioner Through: Mr. Ajay Vohra, Sr. Advocate alongwith Mr. Deepesh Jain, Mr. Samarth Chaudhari, Advocates. versus DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 27 DELHI & ANR. .....Respondents Through: Mr. Gaurav Gupta, Sr. Standing Counsel with Mr. Shivendra Singh, Jr. SC & Mr. Yojit Pareek, Jr. SC for Revenue. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 01.04.2025 1. The petitioner has filed the present petition, inter alia, praying that directions be given to pass an appeal effect order in respect of Assessment Year [AY] 2011-12 for implementing the order dated 24.07.2024 passed by the Income Tax Appellate Tribunal [ITAT] in ITA No.1053/Del/2023. 2. The petitioner also prays that directions be issued for refund of the tax paid after adjusting twenty per cent of the outstanding demands for other years. It is stated that reassessment proceedings for AY 2011-12 were initiated, which culminated in re-assessment order dated 29.12.2018 whereby the Assessing Officer [AO] has made an addition of ₹3644.85 crores, to the income of the assessee. Consequently, a demand of ₹2336.70 crores was raised. The petitioner appealed the said re-assessment order This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 07/04/2025 at 12:34:47 before the Commissioner of Income Tax (Appeals) [CIT(A)] but was unsuccessful and, by an order dated 28.03.2023, CIT(A) upheld the said order. 3. Thereafter, the petitioner filed the aforementioned appeal before the ITAT, which was decided in favour of the petitioner, by an order dated 24.07.2024. Thus, the addition of ₹3644.85 crores and a consequent demand of ₹2336.70 crores was set aside. The petitioner states that the Revenue has not preferred any appeal against the order dated 24.07.2024 passed by the ITAT. 4. In the meanwhile, the petitioner had deposited an aggregate amount of ₹375,50,59,630/- against the disputed demand. The tabular statement indicating the dates on which various deposits were made as under: Date of challan Challan no. Amount (Rs.) 26-03-2019 01660 280,00,00,000 02-07-2020 05076 29,00,00,000 01-09-2020 03516 14,00,00,000 01-12-2020 07517 14,00,00,000 01-03-2021 07042 13,50,59,630 12-05-2023 04018 25,00,00,000 Total 375,50,59,630 5. The petitioner is essentially aggrieved on account of the concerned officer not passing an appeal effect order and not refunding the amount, which was deposited by the petitioner pursuant to then outstanding demand in respect of AY 2011-12 notwithstanding that the same since been set aside. 6. In the aforesaid circumstances, we consider it apposite to dispose of the present petition by directing the concerned authority to pass an appeal effect order, as expeditiously as possible, in any event, within a period of This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 07/04/2025 at 12:34:47 eight weeks from date. The concerned authority should also process the petitioner’s claim for refund within a period of four weeks thereafter in accordance with law. 7. The petition is disposed of with the aforesaid directions. Pending application(s) also stands disposed of. VIBHU BAKHRU, J TEJAS KARIA, J APRIL 01, 2025/’A’ Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 07/04/2025 at 12:34:47 "