IBM India Private Limited V. The Deputy Commissioner of Income Tax International Taxation Circle 1(2) and The Commissioner of Income Tax and Centralized Processing Center and Director General of Income Tax (Systems)

WP/7016/2024

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The case involves IBM India Private Limited, the petitioner, seeking a writ under Article 226 of the Constitution of India against various income tax authorities for the refund of a substantial amount determined due under previous judicial and tribunal orders for the assessment years 2008-09 to 2015-16. The petitioner argued that despite these orders, the respondents had only refunded the principal amount and not the interest due. The respondents acknowledged the oversight and agreed to refund the amounts with interest if given reasonable time. The court, after considering the submissions and the materials on record, issued a directive for the refund with a specific deadline.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797714 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 19-03-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DILIP
• Assessee Lawyers: TANMAYEE RAJKUMAR
• Keywords: Assessment years; Income Tax Refund; Interest on Refund; Legal Petition
• Section: 244A; 226

Judgement Text

" - 1 - NC: 2024:KHC:11156 WP No. 7016 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF MARCH, 2024 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No. 7016 OF 2024 (T-IT) BETWEEN: 1. IBM INDIA PRIVATE LIMITED., A PRIVATE LIMITED COMPANY, INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT 1956, HAVING OFFIC AT No.12, SUBRAMANYA ARCADE, BANNERGHATTA MAIN ROAD, BANGALORE - 560 029, REPRESENTED HEREIN BY ITS AUTHORISED SIGNATORY, MR SHANKAR RAMJEE, RESIDING AT SJR LUXURIA, FLAT B2,-012, SAPPHIRE BLOCK 456, AREKERE, MICO LAYOUT, BANNERGHATTA ROAD, BENGALURU-560076. …PETITIONER (BY SMT. TANMAYEE RAJKUMAR., ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE 1(2), BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BANGALORE - 560 095. 2. THE COMMISSIONER OF INCOME TAX, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BANGALORE - 560095. Digitally signed by VINUTHA B S Location: High Court of Karnataka - 2 - NC: 2024:KHC:11156 WP No. 7016 of 2024 3. CENTRALIZED PROECESSING CENTER, REPRESENTED HEREIN BY THE DEPUTY DIRECTOR OF INCOME TAX, CPC BENGALURU - 560 500. 4. DIRECTOR GENERAL OF INCOME TAX(SYSTEMS), ARA CENTRE, GROUND FLOOR, E-2, JHANDEWALAN EXTENSION, NEW DELHI - 110055. …RESPONDENTS (BY SRI DILIP M., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS TO FORTHWITH REFUND AN AMOUNT OF Rs.154,08,41,927/- BEING DETERMINED AS DUE TO THE PETITIONER UNDER THE ORDERS DATED 18.02.2022 AND 13.04.2023 PASSED BY R-1 GIVING EFFECT TO THE ORDERS PASSED BY THE HON'BLE SUPREME COURT, THIS HON'BLE COURT AND THE TRIBUNAL FOR THE ASSESSMENT YEARS 2008-09 TO 2015-16 (ANNEXURES A1 - A8) A/W APPLICABLE INTEREST (ON THE AMOUNT OF Rs.154,08,41,927/-) UNTIL THE DATE OF GRANT OF THE REFUND. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: O R D E R In this petition, the petitioner has sought for the following relief: \"i) Directing the respondents to forthwith refund an amount of Rs.154,08,41,927/- being determined as due to the petitioner under the orders dated 18.02.2022 and 13.04.2023 passed by R-1 giving effect to the orders passed by the Hon'ble Supreme Court, this Hon'ble Court and the Tribunal for the assessment years 2008-09 to 2015-16 - 3 - NC: 2024:KHC:11156 WP No. 7016 of 2024 (Annexures A1 - A8) a/w applicable interest (on the amount of Rs.154,08,41,927/-) until the date of grant of the refund. ii) Directing the Respondents to forthwith refund an amount of Rs.59,70,096/-, being the interest short granted for the assessment years 2013-14 and 2015-16 a/w applicable interest; and iii) Pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of the case, in the interest of justice and equity. \" 2. Heard the learned counsel for the petitioner and the learned counsel for the respondents. Perused the materials on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the orders at Annexure - A1 to A8 in order to contend that despite the said orders and the petitioner filing application in Form - 26B of the Income Tax Act, 1961(hereinafter referred to as 'IT Act' for short) at Annexures - B1 to B8, the respondents have only refunded the principal component and not the determined - 4 - NC: 2024:KHC:11156 WP No. 7016 of 2024 interest payable of Rs.154,08,41,927/- as well as shortfall of Rs.59,70,096/- which deserves to be refunded back to the petitioner together with further applicable interest on the petitioner and since the same has not been done by the respondents, the petitioner is before this Court by way of the present petition. 4. Per contra, leaned counsel for the respondents submits that if reasonable time is granted, the respondents would take necessary steps to refund the aforesaid amount of Rs.154,08,41,927/- and Rs.59,70,096/- after verification together with applicable interest to the petitioner within a stipulated time frame. 5. In view of the aforesaid facts and circumstances and the undisputed material on record comprising of Annexures - A1 to A8 and B1 to B8 and the representation dated 03.01.2024 submitted by the petitioner, which has not been complied with by the respondents so far, I deem it just and appropriate to dispose of the petition directing the respondents to refund a sum of Rs.154,08,41,927/- - 5 - NC: 2024:KHC:11156 WP No. 7016 of 2024 together with applicable interest back to the petitioner under Section 244A of the IT Act on or before 30.04.2024. In addition thereto, the respondents are also directed to refund Rs.59,70,096/- being the alleged short fall of the interest granted for the Assessment Year 2013-14 and 2015-16 together with applicable interest under Section 244A of the IT Act back to the petitioner after due verification on or before 30.04.2024. Subject to the aforesaid direction, petition stands disposed off. Sd/- JUDGE VBS List No.: 1 Sl No.: 19 "