NEEMA NIDHI LTD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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WP(C)/23842/2022HC KeralaKLHC01049712202224 November 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.10 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Kerala disposed of the writ petitions by directing the respondents to process the refunds due to the petitioners without any further delay. The court mandated that the refunds must be issued within a period of two months from the date of receipt of a certified copy of the judgment. Furthermore, the court directed that if the petitioners are entitled to any interest on account of the delayed payment of refund, such interest shall also be granted to them. The court acknowledged the submissions of the revenue regarding technical defects and the process at the Centralized Processing Centre, Bengaluru, but emphasized the need for prompt resolution. The issue of the exact quantum of interest, if any, was implicitly left to be determined as per the entitlement of the petitioners.

What were the facts?

The petitioners, Neema Nidhi Ltd., Biju Varghese, Marline Biju Varghese, and Varghese Mavilayil Chacko, were assessed for assessment years 2010-11 and 2016-17, and also faced penalty orders. They subsequently filed applications under the Vivad Se Vishwas Act, 2000, which resulted in a settlement. Following the settlement, the petitioners were due certain refunds. However, these refunds had not been disbursed even after a period of one year and nine months from the date of settlement. The petitioners filed these writ petitions before the High Court of Kerala seeking directions for the release of their refunds.

What were the issues?

1. Whether the delay in issuing refunds to the petitioners, despite settlement under the Vivad Se Vishwas Act, 2000, warrants intervention by the High Court through a writ of mandamus? The Assessee (Petitioners) argued that the settlement under the Vivad Se Vishwas Act, 2000, was concluded, and they are legally entitled to the refunds arising from this settlement. The prolonged delay of nearly two years in receiving these refunds is causing prejudice and necessitates judicial intervention to direct the Income Tax Department to process and issue the refunds promptly. They relied on the principle that once a settlement is reached, the consequential benefits, including refunds, should be disbursed without undue delay. The Revenue (Respondents) contended that the delay in issuing the refund was due to a technical defect. They submitted that manual refunds are not possible and all refund applications are processed at the Centralized Processing Centre, Bengaluru. The Director General of Income Tax has reportedly taken up the matter with the Centralized Processing Centre, and the refund is expected to be issued shortly.

AI-generated summary — verify with the full judgment below

Heard together (4 matters)

WP(C) NO. 23842 OF 2022
WP(C).23511/2022
WP(C) NO. 23516 OF 2022
WP(C) NO. 23610 OF 2022

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 24TH DAY OF NOVEMBER 2022 / 3RD AGRAHAYANA, 1944 WP(C) NO. 23842 OF 2022 PETITIONER: NEEMA NIDHI LTD NEEMA BUILDING KARUVATTA, ADOOR, PATHANAMTHITTA REPRESENTED BY ITS MANAGING DIRECTOR VARGHESE MAVILAYIL CHACKO, PIN - 691523 BY ADVS. S.MUHAMMED HANEEFF DIVYA RAVINDRAN M.H.ASIF ALI SWETHAMBILY C. RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE KARBALA, KOLLAM, PIN - 691001 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (CENTRAL) INCOME TAX OFFICE 5 FLOOR, KANDOMKULATHY TOWERS M.G ROAD,KOCHI, PIN - 682011 3 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI, PIN - 110001 OTHER PRESENT: ADV. JOSE JOSEPH (SC), ADV. S MANU (DSGI) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.11.2022, ALONG WITH WP(C).23511/2022, 23516/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -2- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 24TH DAY OF NOVEMBER 2022 / 3RD AGRAHAYANA, 1944 WP(C) NO. 23511 OF 2022 PETITIONER: BIJU VARGHESE AGED 56 YEARS S/O M.C VARGHESE MAVILAYIL, KURUVATTA ADOOR, PATHANAMTHITTA- 691523, PIN - 691523 BY ADVS. S.MUHAMMED HANEEFF DIVYA RAVINDRAN M.H.ASIF ALI SWETHAMBILY C. RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCONIE TAX CENTRAL CIRCLE KARBALA, KOLLAM- 691001, PIN - 691001 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (CENTRAL INCOME TAX OFFICE 5TH FLOOR KANDOMKULATHY TOWERS M.G ROAD, KOCHI-682011. 3 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI-110001, PIN - 110001 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.11.2022, ALONG WITH WP(C).23842/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -3- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 24TH DAY OF NOVEMBER 2022 / 3RD AGRAHAYANA, 1944 WP(C) NO. 23516 OF 2022 PETITIONER: MARLINE BIJU VARGHESE AGED 42 YEARS W/O BIJU VARGHESE MAVILAYIL, KURUVATTA ADOOR, PATHANAMTHITTA, PIN - 691523 BY ADVS. S.MUHAMMED HANEEFF DIVYA RAVINDRAN M.H.ASIF ALI SWETHAMBILY C. RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE KARBALA,KOLLAM, PIN - 691001 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (CENTRAL) INCOME TAX OFFICE 5TH FLOOR, KANDOMKULATHY TOWER M.G.ROAD, KOCHI, PIN - 682011 3 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO GOVERNMENT MINISTRY OF FINANCE NOTH BLOCK, NEW DELHI, PIN - 110001 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.11.2022, ALONG WITH WP(C).23842/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -4- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 24TH DAY OF NOVEMBER 2022 / 3RD AGRAHAYANA, 1944 WP(C) NO. 23610 OF 2022 PETITIONER: VARGHESE MAVILAYIL CHACKO AGED 83 YEARS, S/O CHACKO MAVILAYIL, KARUVATTA ADOOR, PATHANAMTHITTA- 691523, PIN - 691523 BY ADVS. S.MUHAMMED HANEEFF DIVYA RAVINDRAN M.H.ASIF ALI SWETHAMBILY C. RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE KARBALA, KOLLAM-691001, PIN - 691001 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (CENTRAL), INCOME TAX OFFICE 5TH FLOOR, KASOMKULATHY TOWERS M.G ROAD, KOCHI-682011, PIN - 682011 3 UNION OF INDIA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI-110001, PIN - 110001 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.11.2022, ALONG WITH WP(C).23842/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -5-

J U D G M E N T [W.P (C) Nos.23842/2022, 23511/2022, 23516/2022 & 23610/2022] The petitioners in these cases suffered orders of assessment and orders imposing penalty for assessment years 2010-11 and 2016-17. They filed applications under the Vivad Se Vishwas Act, 2000 and the matter has been settled. As a consequence of settlement, certain amounts have to be refunded to the petitioners. However, such refund has not been made despite the passage of merely one year and 9 months from the date of settlement.

2.

The learned Standing Counsel appearing for the respondent Department states that the refund could not be made only on account of some technical defect and the Director General of Income Tax has already taken up the matter with the Centralized Processing Centre, Bengaluru . It is submitted that the no manual refund is possible and all refund applications are processed at the Centralized Processing Centre at Bengaluru. It is submitted that the refund will be issued shortly.

3.

Taking into consideration of the submissions, this writ petition will stand disposed of directing that the refund due to the petitioners shall be processed without any further delay and shall be be issued at any rate within a period of 2 months from the date of receipt of a certified copy of this judgment. If the petitioners are entitled to any interest on account of the delayed payment of refund, the same shall also be granted to the petitioners. GOPINATH P. JUDGE AMG

W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -6-

Appendix — schedule of exhibits
APPENDIX OF WP(C) 23511/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2010-I 1. Exhibit P1 (a) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2011 -12. Exhibit P1(b) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2012-13. Exhibit P1 (c) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2013-14. Exhibit P1 (d) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2014-15. Exhibit P1 (e) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2015-16. Exhibit P1(f) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2016-17. Exhibit P2 TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E-FILING PORTAL FOR AY 2010-11 Exhibit P2 (a) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E-FILING PORTAL FOR AY 2011-12. Exhibit P2 (b) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3 .2022 IN THE E-FILING PORTAL FOR AY 2012-13 . Exhibit P2 (c) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E-FILING PORTAL FOR AY 2013-14 Exhibit P2 (d) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E-FILING PORTAL FOR AY 2014-15 W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -7- Exhibit P2 (e) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E-FILING PORTAL FOR AY 2015-16. Exhibit P2(f) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3 .2022 IN THE E-FILING PORTAL FOR AY 2016-17. W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -8- APPENDIX OF WP(C) 23516/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2012-13. Exhibit P1(a) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2013-14. Exhibit P1(b) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2014-15. Exhibit P1 (c) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2015-16. Exhibit P2 TRUE COPY OF THE GRIEVANCE PETITION FILED ON 1.3 . 2022 IN THE E-FILING PORTAL FOR AY 2015-16. W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -9- APPENDIX OF WP(C) 23610/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2010-11 Exhibit P1 (a) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2011 -12 Exhibit P1(b) TRUE COPY OF THE FOM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2012 -13 Exhibit P1 (c) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2013-14. Exhibit P1 (d) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2014- I 5 . Exhibit P1 (e) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2015-16. Exhibit P1 (f) TRUE COPY OF THE FOM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2016-17 Exhibit P2 TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3 .2022 IN THE E-FILING PORTAL FOR AY 2014- 1 5 . Exhibit P2 (a) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E-FILING PORTAL FOR AY 2015-16. Exhibit P2 (b) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E,FILING PORTAL FOR AY 2016-17 W.P (C) Nos.23842, 23511, 23516 & 23610/2022 -10- APPENDIX OF WP(C) 23842/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2014-15. Exhibit P1(a) TRUE COPY OF THE FORM 5 CERTIFICATE DATED 20.02.2021 ISSUED BY THE 2ND RESPONDENT FOR AY 2015-16 Exhibit P2 TRUE COPY OF THE GRIEVANCE PETITION FILED ON 11.3.2022 IN THE E-FILING PORTAL FOR AY 2014-15. Exhibit P2(a) TRUE COPY OF THE GRIEVANCE PETITION FILED ON 1.3.2022 IN THEE-FILING PORTAL FOR AY 2015-16

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