M/S OLIVE LIFESCIENCES PRIVATE LIMITED V. THE DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX

WP/21861/2024

AI Insights

In this writ petition, M/s Olive Lifesciences Private Limited sought judicial intervention to enhance the interest computation on a TDS refund under Section 244A of the Income Tax Act, as the interest granted was only for two months despite the significant delay in refund processing. The petitioner argued that the delay in refund from 2013 to 2022 entitled them to interest for the entire period, referencing Circular No.11/2016 and the Supreme Court's decision in Union of India Vs. Tata Chemical Ltd. The respondents acknowledged the oversight and agreed to re-calculate the interest payable.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 759244 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 01-10-2024
• Assessment Year: misc
• Other Referred Cases: Union of India Vs. Tata Chemical Ltd.
• Laws Referred To: Income Tax Act, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ARAVIND CHAVAN
• Assessee Lawyers: ANNAMALAI
• Keywords: Interest computation; Mandamus; Section 244A; TDS refund; Circular No.11/2016; Union of India Vs. Tata Chemical Ltd.
• Section: 244A

Judgement Text

" - 1 - NC: 2024:KHC:40841 WP No. 21861 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF OCTOBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 21861 OF 2024 (T-IT) BETWEEN: M/S OLIVE LIFESCIENCES PRIVATE LIMITED., COMPANY INCORPOATED UNDER COMPANIES ACT. 1956, REPRESENTED BY ITS AUTHORIZED SIGNATORY SRI. SANIL K V SON OF SRI K V NARAYAN, NO 5805/05, NH-4, NEAR NAVAYUGA TOLL GATE, NELAMANGALA, BENGALURU – 562 123. PAN AABCO1065F …PETITIONER (BY SRI. ANNAMALAI S.,ADVOCATE) AND: 1. THE DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX TDS, CIRCLE 2(1), NO 59, HMT BHAVAN, 4TH FLOOR BALLARI ROAD, GANGANAGAR, BENGALURU 560 032. 2. THE COMMISSIONER OF INCOME TAX (TDS) NO 59,HMT BHAVAN, 4TH FLOOR, BALLARI ROAD, GANGANAGAR, BENGALURU 560 032. 3. THE CHIEF COMMISSIONER OF INCOME TAX (TDS) KARNATAKA AND GOA, CENTRAL REVENUE BUILDING, NO 1, QUEENS ROAD, BENGALURU 560 001. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:40841 WP No. 21861 of 2024 4. CENTRALIZED PROCESSING CELL-TDS AAYAKAR BHAWAN,SECTOR 3, VAISHALI, GHAZIABAD, UTTAR PRADESH 201 010. …RESPONDENTS (BY SRI.ARAVIND V CHAVAN.,ADVOCATE FOR R1 TO R3; R4 SERVED BUT UNREPRESENTED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ENHANCE THE SHORT COMPUTATION OF INTEREST UNDER SECTION 244A OF THE ACT IN RESPECT OF TDS REFUND AS COMPUTED IN THE E- MAIL SENT ON 16.08.2023 BY THE R1 TO THE PETITIONER HEREIN MARKED AS ANNX-A. THIS WRIT PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “i) Issue a writ of direction in the nature of a writ of mandamus to enhance the short computation of interest under section 244A of the Act in respect of TDS refund as computed in the e-mail sent on 16.08.2023 by the Respondent No.1 to the petitioner herein marked as Annexure-A. ii) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. - 3 - NC: 2024:KHC:40841 WP No. 21861 of 2024 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that TDS amount payable by the petitioner was paid on various dates on 24.05.2013 and 28.09.2013 and subsequent to which, the request of the petitioner for refund was accepted and refund was granted in favour of the petitioner on 03.12.2022. It is submitted that despite the respondent having collected TDS from the petitioner on 24.05.2013 and 28.09.2013 and having granted refund only on 03.12.2022, respondent has granted interest only for the period of two months and has not granted interest for the remaining period and in the light of the Circular No.11/2016 dated 26.04.2016 and judgment of the Apex Court in the case of Union of India Vs. Tata Chemical Ltd.,1 petitioner would be entitled to interest on the aforesaid refund amount and since the same has not been granted to the petitioner, the petitioner is before this Court by way of present petition. 4. Per contra, learned counsel for the respondent submits that if reasonable time is granted, respondent would calculate the interest payable in favour of petitioner under Section 244A and make payment after due verification. 1 (2014) 6 SCC 335 - 4 - NC: 2024:KHC:40841 WP No. 21861 of 2024 5. In view of the aforesaid facts and circumstances and submissions made by both sides, I deem it just and appropriate to dispose of the petition directing the respondent to verify the records and pay interest in favour of the petitioner on the refund amount in terms of Section 244A of the Income Tax Act bearing in mind Circular No.11/2016 dated 26.04.2016 and judgment of the Apex Court in the case of Union of India (supra) within a period of three months from today. 6. Subject to the aforesaid directions, petition stands disposed of. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 1 Sl No.: 3 "