RIPS CONSULTANCY SERVICES vs. INCOME TAX OFFICER WARD 45(4)
What did the High Court hold?
The High Court accepted the undertaking given by the learned counsel for the respondent. The respondent assured the court that the petitioner's request for payment of interest under Section 244A of the Income Tax Act, 1961, would be processed within eight weeks in accordance with law. The court held the respondent bound by this undertaking. Consequently, the writ petition was disposed of based on this assurance. The court did not make a determination on the legality of the initial non-payment of refunds or interest, as the matter was resolved through the respondent's undertaking. The primary relief granted was the commitment to process the interest payment.
What were the facts?
The petitioner, RIPS Consultancy Services, filed a writ petition before the Delhi High Court seeking the grant of refunds determined under Section 143(1) of the Income Tax Act, 1961, for Assessment Years 2017-18, 2018-19, and 2019-20, along with interest under Section 244A. The petitioner averred that the respondent Income Tax Officer had failed to release these refunds without providing any reasons, contrary to Section 143(1)(e) of the Act. The respondent sought time to obtain instructions. On the subsequent hearing date, the petitioner admitted to having received the refunds but stated that no interest had been paid under Section 244A.
What were the issues?
1. Whether the respondent Income Tax Officer acted contrary to the mandatory provisions of Section 143(1)(e) of the Income Tax Act, 1961, by failing to release the refunds determined under Section 143(1) for Assessment Years 2017-18, 2018-19, and 2019-20 without assigning any reasons. Assessee's Contention: The respondent failed to release the refunds determined under Section 143(1) for the specified assessment years, contrary to the mandatory language of Section 143(1)(e), and did so without providing any reasons. Revenue's Contention: The revenue sought time to obtain instructions. Subsequently, the revenue assured the court that the petitioner's request for interest under Section 244A would be processed.
Which sections of the Income-tax Act were involved?
Section 143(1),Section 143(1)(e),Section 244A
AI-generated summary — verify with the full judgment below
W.P (C) No.7555/2020
Page 1 of 2
$~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 7555/2020
RIPS CONSULTANCY SERVICES
...... Petitioner Through: Mr.Mukesh Gupta, Advocate.
versus
INCOME TAX OFFICER WARD 45 (4)
...... Respondent Through: Mr.Ruchir Bhatia, with Ms. Mansie Jain and Mr. Chandratanay Chaube, Advocates.
Date of Decision: 21st October, 2020
CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE SANJEEV NARULA
J U D G M E N T MANMOHAN, J 1. The petition has been heard by way of video conferencing. : (Oral)
Present writ petition had been filed seeking grant of refund determined under Section 143(1) of the Income Tax Act, 1961 for the Assessment Years 2017-2018, 2018-19 and 2019-20 along with interest under Section 244A of the Act. 3. In the present petition, it had been averred that the respondent contrary to the mandatory language of Section 143(1)(e) of the Act had not released the refunds determined under Section 143(1) of the Act for Assessment Years 2017- 18, 2018-19, 2019-20 and that too without giving any reasons. 2020:DHC:3099-DB
W.P (C) No.7555/2020
Page 2 of 2
On the last date of hearing, Mr. Ruchir Bhaita, learned counsel for respondent had taken time to obtain instructions. 5. Today, learned counsel for petitioner admits that the petitioner has received the refund sought for in the present petition. He, however, states that no interest has been paid till date of payment under Section 244A of the Act. 6. Learned counsel for respondent assures and undertakes to this Court that the petitioner’s request for payment of interest under Section 244A of the Act shall be processed by respondent no.2 within eight weeks in accordance with law. 7. The undertaking given by learned counsel for the respondent is accepted by this Court and respondent is held bound by the same. 8. Recording the aforesaid undertaking, the present writ petition stands disposed of. 9. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.
MANMOHAN, J
SANJEEV NARULA, J OCTOBER 21, 2020 AS
2020:DHC:3099-DB
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