MAXIM INDIA INTEGRATED CIRCUIT DESIGN PRIVATE LIMITED V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP/24073/2023

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Maxim India Integrated Circuit Design Private Limited filed a writ petition against the Deputy Commissioner of Income Tax, seeking an order to grant interest on a tax refund until the actual payment date, as stipulated under Section 244A of the Income Tax Act. The petitioner argued that the interest was only granted up to a certain date, which was contrary to the provisions of the Act. The respondent acknowledged the claim and agreed to consider it within a reasonable time. The court directed the respondent to address the petitioner's claim in accordance with the law and the relevant statutory provisions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748064 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2024
• Assessment Year: misc
• Laws Referred To: Constitution of India, Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: NARENDRA JAYANTILAL JAIN
• Keywords: Interest on Refund; ITAT order; Mandamus; Rectification Order; Writ petition
• Section: 244A; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:5094 WP No. 24073 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 24073 OF 2023 (T-IT) BETWEEN: MAXIM INDIA INTEGRATED CIRCUIT DESIGN PRIVATE LIMITED S 51/2/3/4, S39/5, 4TH FLOOR, COMMERCIAL MANTRI, TOWER B, DB HALLI KARIYAMMANA AGRAHARA, BENGALURU-560103, REP BY ITS DIRECTOR, MR VIMAL CHANDRAKANT BHATT S/O MR CHANDRAKANT MOHANLAL BHATT, AGED ABOUT 58 YEARS, COMPANY REGISTERED UNDER COMPANIES ACT 1956. …PETITIONER (BY SRI. NARENDRA KUMAR JAYANTILAL JAIN.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CIRLCE 4(1)(1), 80 FEET ROAD KORAMANGALA, BANGALORE-560 095. …RESPONDENT (BY SRI.SUSHAL TIWARI,ADVOCATE) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE AS FAR AS PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF MANDAMUS OR OTHERWISE, TO THE LEARNED RESPONDENT TO GRANT INTEREST ON REFUND TILL THE DATE OF ACTUAL PAYMENT OF REFUND AS STIPULATED UNDER SECTION 244A BY PASSING RECTIFICATION ORDER GIVING EFFECT TO THE ITAT ORDER DATED 05/07/2019 IN IT (TP)ANO 287/BANG/2014 AS PER ANNEXURE-A. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:5094 WP No. 24073 of 2023 ORDER In this petition, petitioner has sought for the following reliefs:- “ A. Issue as far as Petitioner is concerned by any appropriate writ or Order in nature of Mandamus or otherwise, to the learned Respondent to grant interest on refund till the date of actual payment of refund as stipulated under Section 244A by passing rectification order giving effect to the ITAT Order dated: 05.07.2019 in I.T.(TP) A No.287/Bang/2014 as per Annexure-A. B. Grant such other reliefs as this Honourable High Court may think fit including cost of this writ petition. “ 2. Learned counsel for the petitioner submits that pursuant to the order dated 05.07.2019 passed by the ITAT, the respondent has granted refund on 28.10.2022 in favour of the petitioner. It is the grievance of the petitioner that the interest granted in his favour on the refund amount is only upto 10.08.2021 and not subsequently, which is contrary to Section 244A(1)(b) of the I.T.Act as well as Section 244A(1)(a) of the I.T.Act and as such, the petitioner is before this Court by way of the present petition. 3. Per contra, learned counsel for the respondent-revenue submits that if reasonable time is granted, they would consider the - 3 - NC: 2024:KHC:5094 WP No. 24073 of 2023 claim of the petitioner for refund as stated supra in accordance with law. 4. In view of the aforesaid facts and circumstances, I deem it just and appropriate to dispose of this petition directing the respondent to consider the claim of the petitioner as sought for by him in terms of Section 244A(1)(a) and 244A(1)(b) of the I.T.Act and in accordance with law bearing in mind the relevant statutory provisions within a period of two months from the date of receipt of a copy of this order. Petitioner is also directed to submit a fresh / new representation giving full particulars of the claim within a period of two weeks from today. So also, the rectification application filed by the petitioner shall be disposed of by the respondent as expeditiously within a period of two months from the date of receipt of a copy of this order. Sd/- JUDGE Srl. "