MUFG BANK LTD V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2) (1)AND ORS.

W.P.(C)/14755/2022

AI Insights

MUFG Bank Ltd filed multiple writ petitions against the Assistant Commissioner of Income Tax and others, seeking directions for the issuance of refunds amounting to approximately Rs. 1,00,00,00,000 for various assessment years. The petitions were based on the non-compliance of the respondents in executing the orders of the Income Tax Appellate Tribunal (ITAT) and other judicial bodies, which had mandated refunds. The petitioner argued that despite several reminders, the respondents failed to act, thus violating Sections 153(5) of the Income Tax Act and Articles 265 and 300A of the Constitution of India. The respondents acknowledged the delay but stated that they were in the process of issuing the refunds. The court, considering the limited relief sought, disposed of the petitions with directions to comply with the legal requirements for issuing the refunds.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 749686 (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: KUNAL SHARM A; RAVI PRAKASH; FARHMAAN ALI; SHRUTI KUMAR; MANAS TRIPATHI
• Assessee Lawyers: NIKHIL RANJAN; KAMAL ARYA; HITEN CHANDE
• Keywords: Assessment Order; Constitutional rights; Income Tax; Refund; ITAT Orders
• Section: 153(5); 244A(1); 244(1A)

Judgement Text

"Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter Page 1 of 5 $~47 to 51 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14745/2022 & C.M.No.45350/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. + W.P.(C) 14748/2022 & C.M.No.45352/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter Page 2 of 5 + W.P.(C) 14749/2022 & C.M.No.45353/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. + W.P.(C) 14752/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter Page 3 of 5 + W.P.(C) 14755/2022 & C.M.No.45377/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. % 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: 1. Present writ petitions have been filed seeking directions to the Respondents to pass orders giving effect to the orders of the Income Tax Appellate Tribunal (‘ITAT’) dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021 as well as the order of the ITAT dated 13th September, 2019 and the order of the Calcutta High Court dated 07th August, 2019 and issue consequential refund of Rs.58,32,30,038/, Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter Page 4 of 5 Rs.11,14,54,207/-, Rs.13,89,08,987/-, Rs.8,11,44,800/- and Rs.1,94,65,800/- for the Assessment Years 2009-10, 1996-97, 2016-17, 2001-02 and 1991-92 with interest under Section 244A(1) of the Income Tax Act, 1961 (‘the Act’) and additional interest under section 244(1A) of the Act. 2. Learned counsel for the Petitioner states that the Respondents have failed to pass orders giving effect to the orders of the ITAT and the High Court without giving any reason due to which the legitimate refunds available to the Petitioner are lying blocked. 3. Learned counsel for the Petitioner states that the Petitioner made several representations to the Respondent No.1 reminding him about passing the order giving effect to the aforementioned orders, but to no avail. 4. Learned counsel for the Petitioner states that the Respondents have grossly failed in their duty in law in not passing the appeal effect orders and issuing refund as per Section 153(5) of the Act and their action of withholding the refund is ex facie contrary to and in contempt of Article 265 and 300A of the Constitution of India. 5. Issue notice. Mr.Kunal Sharma, senior standing counsel accepts notice on behalf of the Revenue and Mr.Ravi Prakash, CGSC accepts notice on behalf of UOI. Mr.Kunal Sharma states that the Revenue is in the process of issuing refunds to the Petitioner. 6. Keeping in view the limited relief sought in the present writ petitions, the same are disposed of along with pending applications with directions to the Respondents to pass the appeal effect order and make payment of refunds pursuant to ITAT orders dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021 as well as the order of the ITAT dated 13th September, 2019 and the order of the Calcutta High Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter Page 5 of 5 Court dated 07th August, 2019 within six weeks in accordance with law. However, 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 "