MOL CORPORATION V. ASSISTANT COMMISSIONER OF INCOME TAX & ORS.

W.P.(C)/1928/2024

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The case involves MOL Corporation, the petitioner, who approached the Delhi High Court seeking additional interest on a tax refund under the Income Tax Act, 1961. The petitioner contended that the respondents, the Assistant Commissioner of Income Tax and others, failed to provide statutory interest on the refunded amount as required under Section 244A(1) and 244A(1A) of the Act. The court noted that a substantial refund had been credited to the petitioner's account but acknowledged the petitioner's claim for additional interest. The court directed the petitioner to file an application with the Assessing Officer to address the interest computation and left the matter for decision by the Assessing Officer.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 748134 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 29-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: SANJAY KUMAR; EASHA; HEMLATA RAWAT; ASHEESH JAIN; GAURAV KUMAR; RIA KHANNA
• Assessee Lawyers: NAGESWAR RAO; PARTH; AMAN REWARIA
• Keywords: Income Tax Refund; Statutory interest; Computational Exercise
• Section: 244A(1A); 244A(1)

Judgement Text

"$~10 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 1928/2024 MOL CORPORATION ..... Petitioner Through: Mr. Nageswar Rao, Mr. Parth & Mr. Aman Rewaria, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX & ORS. ..... Respondents Through: Mr. Sanjay Kumar, Ms. Easha & Ms. Hemlata Rawat, Advs. Mr. Asheesh Jain, CGSC with Mr. Gaurav Kumar & Ms. Ria Khanna, Advs. For R-5. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV % 29.02.2024 O R D E R 1. Pursuant to the last order, Mr. Kumar has apprised us that a sum of INR 517,62,51,652/- has been duly refunded and credited in the account of the writ petitioner. 2. Mr. Rao, learned counsel for the petitioner, however, draws our attention to the following computation on the basis of which it is contended that the respondents have failed to provide interest as statutory payable in terms of Section 244A(1) of the Income Tax Act, 1961 [“Act”] as well as Section 244A(1A) of the Act:- S. No. Particulars Amount (in INR) 1 Short grant of Interest under section 244(1)(b) of the Income Tax Act, 1961 (3,68,12,18,255 x 0.5% x 4 Months from November 2023 to February 2024) 7,36,24,365 2 Non-grant of Additional interest under sectuib 244A(1A) of the Income Tax Act, 1961 (3,68,12,18,255 x 3/12% x 15 Months 13,80,45,685 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 05/03/2024 at 11:07:50 from December 2022 to February 2024) (Please note that ITAT Order dt. 05.07.2022 was received by CIT in August 2022 as per admitted fact in ITA No. 96/2023 filed by Department before this Hon’ble Court Total Amount 21,16,70,050 3. According to learned counsel, the quantification of refund has been made solely on the basis of the order dated 31 October 2023 and which existed even on the first day when the writ petition was instituted. It is the contention of the learned counsel that all that the respondents have done is to release monies in terms thereof without taking into consideration the claim of the petitioner for additional interest payable. 4. In our considered opinion, since the issue of interest would clearly warrant the facts being duly examined and evaluated as well as computational exercise undertaken, we leave it open to the petitioner to move an appropriate application before the Assessing Officer within a period of two weeks from today. The said application may be duly considered and disposed of in accordance with law with due expedition. 5. The writ petition shall stand disposed of on the above terms. YASHWANT VARMA, J PURUSHAINDRA KUMAR KAURAV, J FEBRUARY 29, 2024/neha 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 05/03/2024 at 11:07:50 "