ARICENT TECHNOLOGIES (HOLDINGS) LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX & ANR.

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W.P.(C)/13917/2022HC DelhiDLHC01036866202227 September 2022Author: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA3 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court held that the ITAT order dated April 23, 2021, had attained finality as it was not assailed by the Revenue in an appeal under Section 260A of the Income Tax Act, 1961. Consequently, the inaction of the respondents in granting the refund was found to be in contravention of Sections 240 and 244A of the Act. The Court disposed of the writ petition with a direction to the Assessing Officer to pass an appeal effect order for the ITAT's decision for assessment year 2004-05 within twelve weeks of receiving the order. The Assessing Officer was also directed to grant the consequential refund of tax paid/deposited by the petitioner along with applicable interest, in accordance with the law.

What were the facts?

The petitioner, Aricent Technologies (Holdings) Ltd, successor-in-interest to FSSL, filed a writ petition before the Delhi High Court seeking a direction to the respondents (Assistant Commissioner of Income Tax and another) to grant a refund of taxes paid/deposited/adjusted for assessment year 2004-05, along with applicable interest. The petitioner stated that an Income Tax Appellate Tribunal (ITAT) order dated April 23, 2021, had granted them entitlement to this refund. The petitioner further contended that the Revenue had not appealed the ITAT order under Section 260A of the Income Tax Act, 1961, and despite a letter dated June 21, 2022, requesting effect to the ITAT order and consequential refund, no action had been taken by the respondents.

What were the issues?

1. Whether the inaction of the respondents in granting the refund due to the petitioner, despite an ITAT order dated April 23, 2021, not being appealed by the Revenue, is in contravention of the provisions of the Income Tax Act, 1961, specifically Sections 240 and 244A. Assessee's Contentions: - The petitioner argued that the ITAT order dated April 23, 2021, had established their entitlement to a refund of income tax and interest for assessment year 2004-05. - They contended that since the Revenue had not filed an appeal under Section 260A of the Act against the ITAT order, it had attained finality. - The petitioner asserted that the respondents' failure to issue the refund was in contravention of Sections 240 and 244A of the Act, and despite a follow-up letter, no action was taken. Revenue's Contentions: - The senior standing counsel for the Revenue stated that they had no instructions in the present case.

Which sections of the Income-tax Act were involved?

Section 260A,Section 240,Section 244A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~31 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13917/2022 ARICENT TECHNOLOGIES (HOLDINGS) LTD ..... Petitioner Through: Mr.Ajay Vohra, Sr.Advocate with Mr.Aniket D.Agrawal and Mr.Saksham Singhal, Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX & ANR. ..... Respondents Through: Mr.Sanjay Kumar, Sr.Standing Counsel for the Revenue with Ms.Easha Kadian, Advocate. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

O R D E R % 27.09.2022 C.M.No.42544/2022 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of. W.P.(C) No.13917/2022 By way of the present writ petition, Petitioner seeks a direction to the Respondents to grant refund of taxes paid/ deposited/adjusted in the case of the FSSL [now represented by the Petitioner being the successor-in-interest] for assessment year 2004-05 along with applicable interest as per law. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/06/2026 at 00:42:44

Learned senior counsel for the Petitioner states that as per the ruling of the Income Tax Appellate Tribunal (‘the Tribunal’) dated 23rd April, 2021, Petitioner became entitled to refund of income tax (including interest) paid/deposited for the said assessment year. Learned senior counsel for the Petitioner states that as per the information available with the Petitioner, the order dated 23rd April, 2021 passed by the Tribunal has not been further assailed in appeal under Section 260A of the Income Tax Act, 1961 (‘the Act’) before this Court by the Revenue. He states that despite this, no refund has been issued to the Petitioner in contravention of Section 240 and Section 244A of the Act. He states that though the Petitioner filed letter dated 21st June, 2022 with the Respondent No. 1 requesting him to pass orders giving effect to the orders of the Tribunal and grant consequential refund due to the Petitioner, yet no action has been taken by the Respondents. Issue notice. Mr.Sanjay Kumar, senior standing counsel accepts notice on behalf of the Respondents-Revenue. He states that he has no instructions in the present cases. This Court is of the view that as the order of Tribunal has not been assailed in an appeal under Section 260A of the Act, it has attained finality and the inaction of the Respondents in granting the refunds is in contravention of Sections 240 and 244A of the Act. Consequently, the present writ petition is disposed of with a direction to the Assessing Officer to pass the appeal effect order of the order passed by the Tribunal for the Assessment Year 2004-05 within twelve weeks of receipt of this order as well as grant, if any, consequential refund of tax This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/06/2026 at 00:42:44

paid/deposited by the Petitioner along with applicable interest in accordance with law. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J SEPTEMBER 27, 2022 KA This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/06/2026 at 00:42:44

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