INTERTEK INDIA PRIVATE LIMITED V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 10 1 NEW DELHI

W.P.(C)/11517/2023

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The case involves Intertek India Private Limited, the petitioner, who filed a writ petition against the Assistant Commissioner of Income Tax, Circle 10, New Delhi, the respondent, due to the non-disposal of a rectification application dated 25.05.2016. The petitioner sought a writ of mandamus to direct the respondent to dispose of the application within four weeks and to grant a consequential refund with applicable interest under Section 244A of the Income Tax Act, 1961. The court noted that the statutory timeline for disposing of such applications is six months, as per sections 154(a) and 154(8) of the Act, and Instruction No.1 of 2016. However, the court expressed difficulty in understanding the delay in approaching the court, given that the period involved was more than seven years.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 748932 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 31-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ABHISHEK MARATHA; AKSHAT SINGH
• Assessee Lawyers: KAMAL SAWHNEY; NIHIL AGARWAL; PURU MEDHIRA
• Keywords: Delay in disposal; Income Tax; Rectification Application; Writ of Mandamus
• Section: 244A; 154(8); 154(a)

Judgement Text

" W.P.(C)No.11517/2023 Page 1 of 3 $~43 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 31.08.2023 + W.P.(C) 11517/2023 INTERTEK INDIA PRIVATE LIMITED ..... Petitioner Through: Mr Kamal Sawhney with Mr Nihil Agarwal and Mr Puru Medhira, Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 10 1 NEW DELHI ..... Respondent Through: Mr Abhishek Maratha, Sr. Standing Counsel with Mr Akshat Singh, Standing Counsel. CORAM: HON'BLE MR JUSTICE RAJIV SHAKDHER HON'BLE MR JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J.: (ORAL) 1. Issue notice. 2. Mr Abhishek Maratha, learned senior standing counsel who appears on behalf of the respondents/revenue, accepts notice. 3. Given the directions that we propose to pass, Mr Maratha says that he does not wish to file a counter-affidavit in the matter, and he will argue the matter based on the record presently available with the Court. 3.1 Therefore, with the consent of the learned counsels for the parties, the writ petition is taken up for hearing and final disposal, at this stage itself. 4. The substantial prayer made in the writ petition, in essence, articulates Digitally Signed By:ATUL JAIN Signing Date:08.09.2023 21:15:50 Signature Not Verified W.P.(C)No.11517/2023 Page 2 of 3 the grievance of the petitioner. Therefore, for the sake of convenience, the prayer made is set forth hereafter: “(a) Issue a Writ of mandamus, or a Writ in the nature of mandamus, or any other appropriate Writ or Order directing the Respondent to dispose of Petitioner’s Rectification Application dated 25.05.2016 within a period of four weeks and grant consequential refund along with applicable interest under Section 244A of the Act within the said four weeks.” 5. A perusal of the prayer clause would show that the petitioner is aggrieved by the fact that its rectification application dated 25.05.2016 has not been disposed of, as yet. 6. As rightly averred by the petitioner, the timeline fixed under sections 154(a) and 154(8) of the Income Tax Act, 1961 [in short, “the Act”], is six (6) months. The period involved goes way beyond the statutory timeline fixed for the disposal of a rectification application. This is also the position that obtains as per Instruction No.1 of 2016 dated 15.02.2016. 7. That said, we find it difficult to understand why the petitioner did not approach the Court within a reasonable period. Repeated representations to the Assessing Officer (AO) and grievances sought cannot explain, in our view, the delay and laches in approaching the Court. The period involved is more than seven (7) years. 7.1 Therefore, we dispose of the writ petition with the following directions: (i) The concerned officer will dispose of the rectification application within four (4) weeks of receipt of a copy of the judgment. Digitally Signed By:ATUL JAIN Signing Date:08.09.2023 21:15:50 Signature Not Verified W.P.(C)No.11517/2023 Page 3 of 3 (ii) The AO will bear in mind that the first representation to the respondent was made on 09.10.2019. We are therefore, of the opinion that interest between the period after the expiry of six (6) months from when the rectification application was filed and 09.10.2019 in the facts of this case, ought not to be paid to the petitioner. 8. Parties will act based on the digitally signed copy of the order. RAJIV SHAKDHER, J GIRISH KATHPALIA, J AUGUST 31, 2023 / tr Digitally Signed By:ATUL JAIN Signing Date:08.09.2023 21:15:50 Signature Not Verified "