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Interglobe Enterprises Pvt Ltd & Ors vs Dcit Circle 10(1) Delhi & Anr on 21 November, 2022

Author: Manmohan

Bench: Manmohan, Manmeet Pritam Singh Arora

                              $~67
                              *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +      W.P.(C) 16001/2022
                                     INTERGLOBE ENTERPRISES PVT LTD & ORS.                   ..... Petitioners
                                                        Through:     Mr.Nagesh Kumar Behl, Advocate.

                                                        versus

                                     DCIT CIRCLE 10(1) DELHI & ANR.                        ..... Respondents
                                                        Through:     Mr.Ajit Sharma, Sr.Standing Counsel
                                                                     for the Revenue with
                                                                     Mr.A.Renganath, Advocate.
                              CORAM:
                              HON'BLE MR. JUSTICE MANMOHAN
                              HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
                                                        ORDER

% 21.11.2022 C.M.No.49931/2022 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of.

By way of the present writ petition, Petitioners seek a direction to the Respondents to dispose of rectification applications filed by the Petitioners under Section 154 of the Income Tax Act, 1961 ('the Act') to give effect to the appeal order and to issue the refund along with the applicable interest @ 9% per annum in respect of the appeal order.

Learned counsel for the Petitioners states that the CIT (A) passed an order dated 15th September, 2010 whereby the disallowance was reduced from Rs. 431.89 to Rs.26.37 Lacs. He, however states that appeal effect to Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:22.11.2022 19:17:56 the order of the CIT (A) dated 15th September, 2010 has not been given for the last twelve years. He states that tax of Rs.3,22,89,044/- was recovered against the demand but refund of the same is also not yet given to the Petitioner No. 1. He states that the ITAT passed an order dated 22nd July, 2011 for fresh examination of expenses and this Court passed an order dated 19th December, 2011 whereby the matter was restored back to the file of Respondent No.1 for passing a fresh assessment order. However, Respondent No.1 has not passed fresh assessment order for the last eleven years and now matter has become time barred.

Learned counsel for the Petitioners states that ten rectification applications of the Petitioners filed under Section 154 of the Act have not yet been disposed of and some of them are pending for fifty one months, whereas as per Section 154(8) of the Act, rectification application should have been disposed of within six months from the end of the month in which the rectification application is filed. He further states that eighteen applications for giving effect to the various appeal orders passed by the ITAT and the CIT (A) are pending and some of them have been pending for over 146 months whereas the same should have been disposed of within three months/nine months of the end of the month in which appellate order is received.

Issue notice. Mr.Ajit Sharma, learned senior standing counsel accepts notice on behalf of the Respondents-Revenue. He states that he has no objection to disposal of the present writ petition with a direction to the Assessing Officer to decide the ten rectification application as well as to pass eighteen appeal effect orders within a strict time frame. He, however, opposes grant of any relief under prayer (D) of the present writ petition.

In rejoinder, learned counsel for the Petitioner states that he does not wish to press prayer (D) of the present writ petition at this stage. He states that he would press for the reliefs sought for in prayer (D) after the appeal effect orders and rectification orders had been passed.

Keeping in view the aforesaid, present writ petition is disposed of with a direction to the Assessing Officer to decide the ten rectification applications filed by the Petitioner as well as to pass eighteen appeal effect orders and issue refunds, if any, along with applicable interest thereon within twelve weeks in accordance with law. This Court clarifies that it has not commented on the merits. The rights and contentions of all the parties are left open.

List the matter for compliance on 29th May, 2023.

MANMOHAN, J MANMEET PRITAM SINGH ARORA, J NOVEMBER 21, 2022 KA Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:22.11.2022 19:17:56