GURMUKHDAS KHUBCHANDANI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2 KALYAN AND ORS

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WP/6126/2024HC BombayHCBM01041946202330 April 2024Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE JUSTICE DR. NEELA KEDAR GOKHALE2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court accepted the undertaking given by the Revenue that the refund amount of Rs. 31,42,325/-, which includes interest of Rs. 18,25,424/- under Section 244A of the Income Tax Act, 1961, would be paid to the petitioner on or before May 9, 2024. The Court noted that the process to ensure the credit of the refund had already been initiated by the concerned officer. Consequently, the writ petition was disposed of with liberty granted to the petitioner to approach the court again if the amount was not credited by the stipulated date. No specific finding was made on the merits of the Section 154 order itself, as the matter was resolved based on the undertaking and the procedural disposal.

What were the facts?

The petitioner, Gurmukhdas Khubchandani, filed a writ petition before the Bombay High Court challenging an order passed by the Assessing Officer (AO) on April 29, 2024, under Section 154 of the Income Tax Act, 1961. This order determined an amount of Rs. 31,42,325/- payable to the petitioner, which included Rs. 18,25,424/- as interest under Section 244A of the Act. The Revenue, represented by Ms. Kanani, stated on instructions that this amount would be paid on or before May 9, 2024. The Assistant Commissioner of Income Tax, Circle – 1, Kalyan, who passed the rectification order, provided an undertaking that the refund would be credited to the petitioner's account. The petitioner sought to dispose of the petition with liberty to approach the court if the payment was not made by the stipulated date.

What were the issues?

1. Whether the Revenue will comply with the undertaking to pay the determined refund amount of Rs. 31,42,325/- (including Rs. 18,25,424/- interest under Section 244A) to the petitioner on or before May 9, 2024, as stated in the proceedings under Section 154 of the Income Tax Act, 1961. Assessee's Contention: The petitioner sought to have the writ petition disposed of with liberty to approach the court if the payment was not credited by the specified date. Revenue's Contention: The Revenue, through its counsel, provided an undertaking that the refund amount would be paid on or before May 9, 2024, and confirmed that the process to ensure the refund was credited had commenced.

Which sections of the Income-tax Act were involved?

Section 154,Section 244A

AI-generated summary — verify with the full judgment below

1/2 914-WP-6126-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 6126 OF 2024 Gurmukhdas Khubchandani

….Petitioner V/s. Deputy Commissioner of Income Tax, Circle 2, Kalyan and Ors. …Respondents ---- Mr. Mihir Naniwadekar a/w Ms. Rucha Vaidya i/b Mr. Ruturaj Gurjar for Petitioner. Ms. Samiksha Kanani for Respondents-Revenue. ---- CORAM : K.R. SHRIRAM & DR. NEELA GOKHALE, JJ.

DATED : 30th APRIL 2024 P.C. :

1.

Mr. Naniwadekar states that yesterday, i.e., on 29th April 2024 the Assessing Officer (A.O.) has passed an order under Section 154 of the Income Tax Act, 1961 (the Act) from which it appears that the amount of Rs.31,42,325/- which includes interest of Rs.18,25,424/- under Section 244A of the Act is payable. Ms.Kanani states on instructions that this amount will be paid on or before 9th May 2024. Statement accepted as an undertaking by the Officer Mr. Ramesh Porandla, Assistant Commissioner of Income Tax, Circle – 1, Kalyan who has passed the rectification order. Ms.Kanani states that the officer has already started the process to ensure that the refund as determined in the order dated 29th April 2024 is credited to petitioner’s account. Purti Parab PURTI PRASAD PARAB PURTI PRASAD PARAB Date: 2024.05.02 11:04:28 +0530

2/2 914-WP-6126-2024.doc

2.

In view of the above, Mr. Naniwadekar states that petition be disposed with liberty to approach the court if the amount is not credited on or before 9th May 2024. 3. Petition disposed with liberty as prayed. (DR. NEELA GOKHALE, J.) (K.R. SHRIRAM, J.) Purti Parab

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