NOKIA INDIA PVT LTD. vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 16(1) & ORS.

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W.P.(C)-15030/2021HC Delhi2021:DHC:440524 December 20213 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court, while acknowledging the limited relief sought in the writ petition, directed Respondent No. 1 (Assistant Commissioner of Income Tax) to pass the necessary appeal effect orders in pursuance to the orders of the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals). The Court further directed the respondent to grant the consequential refunds along with applicable interest, in accordance with the law, within a period of twelve weeks. The Court did not delve into the merits of the original tax disputes but focused on ensuring compliance with the prior appellate authorities' decisions and statutory provisions for refund processing. The primary reasoning was to alleviate the financial prejudice faced by the petitioner due to the delay in implementing the appellate orders. The ratio decidendi is that authorities must comply with appellate orders and process refunds expeditiously to avoid undue hardship to assessees.

What were the facts?

The petitioner, Nokia India Pvt Ltd., filed a writ petition before the Delhi High Court seeking directions to give effect to orders passed by the Income Tax Appellate Tribunal (ITAT) and the Commissioner of Income Tax (Appeals). These orders, dated between August 2020 and October 2020, pertained to Assessment Years 2004-05, 2005-06, 2008-09, and 2011-12. The petitioner also sought the consequential refund of approximately Rs. 120 crores along with applicable interest under Section 244A of the Income Tax Act, 1961. The petitioner stated that despite multiple representations, the respondents had not issued the appeal effect orders under Section 153(5) of the Act. The petitioner highlighted severe financial prejudice due to the pendency of these refunds, especially as it had discontinued business operations since March 2015.

What were the issues?

1. Whether the respondents have failed to give effect to the orders of the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals) for the specified assessment years, thereby contravening the provisions of the Income Tax Act, 1961, and relevant CBDT circulars? 2. Whether the petitioner is entitled to consequential refunds amounting to Rs. 120 crores along with applicable interest under Section 244A of the Income Tax Act, 1961, due to the delay in issuing appeal effect orders? Assessee's Contentions: The petitioner argued that the respondents had not provided reasons for the non-issuance of appeal effect orders under Section 153(5) of the Act, despite multiple representations. They contended that this inaction was in contravention of various CBDT circulars and the law laid down by the High Court. The petitioner also highlighted the severe financial prejudice caused by the delay in receiving the refunds, especially given the discontinuation of its business operations. The petitioner relied on the orders of the ITAT and the CIT(A) as the basis for their claim. Revenue's Contentions: The judgment records that the revenue's counsel prayed for an adjournment due to personal difficulty of the arguing counsel.

Which sections of the Income-tax Act were involved?

Section 244A,Section 153(5),Section 271(1)(c)

AI-generated summary — verify with the full judgment below

W.P. (C) 15030/2021

Page 1 of 3

$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P.(C) 15030/2021

NOKIA INDIA PVT LTD.

..... Petitioner Through Mr.Ajay Vohra, Sr.Advocate with Mr.Kishore Kunal, Mr.Parth and Ms.Ankita Prakash, Advocates.

versus

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 16(1) & ORS.

..... Respondents

Through Mr.Udit Sharma, Advocate.

Date of Decision: 24th December, 2021

CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE NAVING CHAWLA J U D G M E N T

MANMOHAN, J (Oral): C.M.No.47455/2021

Exemption allowed, subject to all just exceptions.

Accordingly, the application stands disposed of. 1. Present writ petition has been filed seeking orders giving effect to the learned Tribunal’s order dated 26 W.P.(C) 15030/2021 th October, 2020, 15th October, 2020, 17th August, 2020 passed in ITA 2160/Del/2018, ITA 2161/Del/2018, ITA 6500/Del/2017, ITA 1883/Del/2017 for Assessment Years 2004- 05, 2005- 06, 2008-09, 2011-12 and grant consequential refund along with the 2021:DHC:4405-DB

W.P. (C) 15030/2021

Page 2 of 3

applicable interest under Section 244A of the Income Tax Act, 1961(for short ‘Act’). Petitioner also seeks order giving effect to order dated 31st 2. Learned senior counsel for the Petitioner states that despite multiple representations of the Petitioner, till date the Respondents have not provided any reasons for the non-issuance of orders giving effect under Section 153(5) of the Act and consequential grant of refund cumulatively amounting to Rs. 120 crores, along with applicable interest, legally and rightfully due to the Petitioner for the subject Assessment Years. He states that the Petitioner has discontinued its business operations since March, 2015 and the pendency of such huge amounts of refunds is leading to severe financial prejudice to the Petitioner. He states that this action of the Respondents is in contravention to various CBDT circulars and law laid down by this Court.

October, 2017 passed by the learned Commissioner of Income Tax (Appeals) deleting the penalty under section 271(1)(c) of the Act for the Assessment Year 2008-09. 3. Issue notice. Mr.Udit Sharma, Advocate accepts notice on behalf of the Respondents. He prays for an adjournment on the ground that the arguing counsel, Ms.Vibhooti Malhotra is in personal difficulty in the post lunch session. 4. However, keeping in view the limited relief sought in the present writ petition, this Court directs the Respondent No.1 to pass appeal effect orders in pursuance to the aforesaid orders of the Tribunal and the Commissioner of Income Tax (Appeals) as well as grant refunds along with applicable interest, in accordance with law, within twelve weeks.

2021:DHC:4405-DB

W.P. (C) 15030/2021

Page 3 of 3

5.

With the aforesaid directions, present writ petition stands disposed of.

MANMOHAN, J

NAVIN CHAWLA, J DECEMBER 24, 2021 KA

2021:DHC:4405-DB

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