M/S. MYCON CONSTRUCTION LIMITED V. ASST. DIRECTOR OF INCOME TAX, CPC

WP/13274/2023

AI Insights

The case involves M/s. Mycon Construction Limited, which filed two writ petitions against various income tax authorities, seeking to quash rectification orders and to obtain refunds along with interest for the assessment years 2021-22 and 2022-23. The petitions were filed under Articles 226 and 227 of the Constitution of India, challenging the rectification orders passed under Section 154 of the Income Tax Act. During the proceedings, it was acknowledged that the petitioner was admitted to a refund, but disputes remained regarding the computation of interest on these refunds. The court dismissed the petitions, allowing the petitioner to seek statutory remedies for the interest computation issue.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 684849 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 09-11-2023
• Assessment Year: misc
• Laws Referred To: Article 226, Article 227, Section 154 of the Act, Section 244(1A) of the Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: SURYA TEJAS PARTHASARATHI
• Keywords: Income Tax Refund; Interest computation; Rectification Order; Writ of Certiorari
• Section: 154; 244(1A)

Judgement Text

" - 1 - NC: 2023:KHC:40274 WP No. 13274 of 2023 C/W WP No. 13295 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF NOVEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 13274 OF 2023 (T-IT) C/W WRIT PETITION NO. 13295 OF 2023 (T-IT) IN WP NO. 13274/2023 BETWEEN: M/S. MYCON CONSTRUCTION LIMITED (CIVIL AND STRUCTURAL CONTRACTORS), (REGISTERED UNDER THE COMPANIES ACT, 1956 UNDER REGISTRATION NO 08/10060 OF 1989-90 INDUSTRY HOUSE 45 RACE COURSE ROAD, FAIR FIELD LAYOUT BENGALURU - 560001 REPRESENTED BY ITS EXECUTIVE DIRECTOR, SRI ANIL KUMAR MALPANI AGED 67 YEARS SON OF SRI PRAYAG CHAND MALPANI. …PETITIONER (BY SRI. SURYA TEJAS L A/W SRI. S PARTHASARATHI.,ADVOCATES) AND: 1. ASST. DIRECTOR OF INCOME TAX, CPC THE CENTRALIZED PROCESSING CENTER INCOME TAX DEPARTMENT, NO 48/1, AND 48/2, PRESTIGE ALPHA, ELECTRONIC CITY BENGALURU - 560100. Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:40274 WP No. 13274 of 2023 C/W WP No. 13295 of 2023 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4 (1) (1) 2ND FLOOR BMTC BUILDING , KORAMANGALA BENGALURU - 560095. 3. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX BANGALORE CENTRAL REVENUE BUILDING NO 01 QUEEN S ROAD, BENGALURU - 560001. 4. CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110001. …RESPONDENTS (BY SRI.SUSHAL TIWARI., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT IN THE NATURE OF WRIT OF CERTIORARI QUASH THE RECTIFICATION ORDER DATED 23.1.2023 PASSED UNDER SEC 154 OF THE ACT BY THE R-1 FOR THE A.Y 2022-23 IN FILE DIN.CPC/2223/U6/324654733 (ANNX- D); DIRECT THE R-1 TO REFUND RS. 82,75,680/- TO THE PETITIONER IN FULL AS PRAYED FOR ALONG WITH INTEREST UNDER SEC 244(1A) OF THE ACT (ANNX-A). - 3 - NC: 2023:KHC:40274 WP No. 13274 of 2023 C/W WP No. 13295 of 2023 IN WP NO. 13295/2023 BETWEEN: M/S MYCON CONSTRUCTION LIMITED (CIVIL AND STRUCTURAL CONTRACTORS), REGISTERED UNDER THE COMPANIES ACT, 1956 UNDER REGISTRATION NO 08/10060 OF 1989-90 INDUSTRY HOUSE, 45, RACE COURSE ROAD, FAIR FIELD LAYOUT, BENGALURU - 560001 REPRESENTED BY ITS EXECUTIVE DIRECTOR, SRI ANIL KUMAR MALPANI AGED 67 YEARS SON OF SRI PRAYAG CHAND MALPANI. …PETITIONER (BY SRI. SURYA TEJAS L A/W S PARTHASARATHI.,ADVOCATES) AND: 1. THE CENTRALIZED PROCESSING OFFICER INCOME TAX DEPARTMENT, NO 48/1, AND 48/2, PRESTIGE ALPHA, ELECTRONIC CITY, BENGALURU – 560100. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4 (1) (1) 2ND FLOOR, BMTC BUILDING, KORAMANGALA BENGALURU - 560095. 3. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, BANGALORE CENTRAL REVENUE BUILDING NO 01, QUEENS ROAD, - 4 - NC: 2023:KHC:40274 WP No. 13274 of 2023 C/W WP No. 13295 of 2023 BENGALURU - 560001. 4. CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI - 110001. …RESPONDENTS (BY SRI.SUSHAL TIWARI., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE RECTIFICATION ORDERS DATED 14.1.2023, 2.3.2023, 24.3.2023 AND 4.4.2023 PASSED UNDER SECTION 154 OF THE ACT BY THE R-1 FOR THE A.Y 2021-22 IN FILE DIN CPC/2122/U6/323973974, DIN CPC/ 2122/ U6/ 325701943, DIN CPC/ 2122/ U6/ 325950702 AND DIN CPC/ 2122/ U6/ 326513193 RESPECTIVELY (ANNX-D, F, H AND K); DIRECT THE R-1 TO REFUND RS.1,06,58,600/- TO THE PETITIONER IN FULL AS PRAYED FOR ALONG WITH INTEREST UNDER SECTION 244(1A) OF THE ACT ANNX-A. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: - 5 - NC: 2023:KHC:40274 WP No. 13274 of 2023 C/W WP No. 13295 of 2023 O R D E R These petitions are filed inter alia for mandamus to the first respondent to allow certain refunds along with interest. Sri Sushal Tiwari, the learned Standing Counsel for the respondents, submits that during the pendency of these petitions, the petitioner’s applications for refund are considered and the petitioner is admitted to refund and therefore, the petitions are rendered infructuous. In rejoinder, the learned counsel for the petitioner, submits that the petitioner is admitted to refund but the interest has not been paid as required in law. It cannot be gainsaid that if there is any grievance as against the computation of interest, the petitioner must necessarily work out its statutory remedy and there can be no cause insofar as the present petition is concerned. - 6 - NC: 2023:KHC:40274 WP No. 13274 of 2023 C/W WP No. 13295 of 2023 Hence, the petition stands dismissed with all just liberty to the petitioner. SD/- JUDGE NV List No.: 1 Sl No.: 55 "