KRBL LIMITED V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 13(1), DELHI & ORS.

W.P.(C)/14767/2022

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KRBL Limited filed a writ petition against the Deputy Commissioner of Income Tax and others, seeking a refund of Rs.34,00,00,000 along with interest, which was the total tax paid under protest. This petition was based on the favorable rulings from the CIT(A) and ITAT, which deleted all additions and ruled in favor of KRBL Limited. Despite these rulings, the Respondents did not issue the refunds, prompting KRBL Limited to approach the High Court. The court found that the Respondents had sufficient time to file an appeal against the ITAT's decision but had not done so within the legally mandated timeframe. Consequently, the court ordered the Respondents to process the refunds as per the appellate orders.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 679647 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 19-10-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A RENGANATH; AJIT SHARMA
• Assessee Lawyers: SALIL KAPOOR; SUMIT LALCHANDANI; ANANYA KAPOOR; TARUN CHANANA
• Keywords: Appeal Effect Order; CIT(A); Income Tax Refund; ITAT; Violation of Article 265; Section 237 of the Act
• Section: 244A; 265; 237; 237; 244A(1A)

Judgement Text

"Neutral Citation Number: 2022/DHC/004421 W.P.(C) No.14767/2022 Page 1 of 3 $~54 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14767/2022 KRBL LIMITED ..... Petitioner Through: Mr.Salil Kapoor with Mr.Sumit Lalchandani, Ms.Ananya Kapoor and Mr.Tarun Chanana, Advocates. versus DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 13(1), DELHI & ORS ..... Respondents Through: Mr.A.Renganath, Advocate for Mr.Ajit Sharma, Sr.Standing Counsel for the Revenue. % Date of Decision: 19th October, 2022 CORAM: HON’BLE MR. JUSTICE MANMOHAN HON’BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J: C.M.No.45401/2022 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of. W.P.(C) No.14767/2022 1. Present writ petition has been filed seeking a direction to the Respondents to issue refund of Rs.24,03,89,270/- along with up-to-date interest to the Petitioner pursuant to appeal effect order dated 05th April, 2021 arising out of order of CIT(A) as well as pass appeal effect order Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified Neutral Citation Number: 2022/DHC/004421 W.P.(C) No.14767/2022 Page 2 of 3 pursuant to order of the Income Tax Appellate Tribunal (‘ITAT’) dated 09th May, 2022 and issue additional refund of Rs.9,96,10,730/- along with up-to- date interest. 2. Learned counsel for the Petitioner states that the ITAT deleted all the additions and ruled in favour of the Petitioner and the Petitioner is now entitled to a refund of the entire tax paid under protest aggregating to Rs.34,00,00,000/- (along with applicable interest under Section 244A/244A(1A) of the Income Tax Act, 1961 (‘the Act’). 3. He states that the Petitioner made several representations to the Respondents but to no avail. He submits that non-issuance of refund is in violation of Article 265 of the Constitution of India and also against Section 237 of the Act. 4. Issue notice. Mr.A.Renganath, Advocate accepts notice on behalf of the Respondents-Revenue. He states that the Revenue is in the process of filing an appeal against the order of the ITAT. 5. Having heard learned counsel for the parties, this Court is of the view that the Respondents-Revenue have had sufficient time to file an appeal against the order of the ITAT. In any event, in accordance with the mandate of law, the appeal effect order has to be passed within three months of passing of the appeal order. 6. Keeping in view the limited relief sought in the present writ petition, the same is disposed of along with pending application with a direction to the Respondents-revenue to consider:- (i) Issue of refund of Rs.24,03,89,270/- along with up-to-date interest to the Petitioner pursuant to appeal effect order dated 05th April, 2021 arising out of order of CIT(A); and Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified Neutral Citation Number: 2022/DHC/004421 W.P.(C) No.14767/2022 Page 3 of 3 (ii) Appeal effect order pursuant to order of the ITAT dated 09th May, 2022 and issue additional refund of Rs. 9,96,10,730/- along with up- to-date interest, in accordance with law. 7. The necessary appeal effect orders and payments of refunds shall be made within the said period of six weeks. The rights and contentions of all the parties are left open. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J OCTOBER 19, 2022 KA Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified "