Tata Teleservices Limited vs. The Assistant Commissioner of Income Tax (TDS)

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WP/28323/2025HC TelanganaHBHC01056445202517 February 2026Author: APARESH KUMAR SINGH,G.M. MOHIUDDIN11 pages
AI SummaryRemanded

What did the High Court hold?

The High Court acknowledged that the issue pertained to the processing of refund claims for past assessment years (2007-08, 2008-09, and 2009-10). The Court directed the Petitioner to approach Respondent No. 4 (Assistant Commissioner of Income Tax, Circle 25(1), New Delhi) with all relevant details of the refund claims within ten days from the date of the order. Respondent No. 4 was directed to process these claims in accordance with the law within a reasonable period. The admissible refund was to be paid along with statutory interest, if any, preferably within twelve weeks from the receipt of a copy of the order. The Petitioner was also directed to cooperate with Respondent No. 4 in the refund proceedings, including the computation of interest. The Court noted that the Petitioner had already made an application to Respondent No. 4 on 19.11.2025. The writ petitions were disposed of accordingly, with no costs.

What were the facts?

The Petitioner, Tata Teleservices Limited, filed three writ petitions (W.P. Nos. 28368, 28323, and 28325 of 2025) before the High Court for the State of Telangana at Hyderabad. These petitions concerned claims for refunds of principal amounts and penalties, along with statutory interest, for Assessment Years (AY) 2007-08, 2008-09, and 2009-10. The Petitioner sought directions for the respondents to pass necessary appeal effect orders and issue the due refunds in a time-bound manner. The respondents, including the Assistant Commissioner of Income Tax (TDS) and the Commissioner of Income Tax (TDS), filed a common counter-affidavit. The Income Tax Department acknowledged that refund amounts totaling Rs. 29,13,35,299/- for AYs 2007-08, 2008-09, 2009-10, and 2010-11 had been paid, which the petitioner accepted. However, a balance refund was still pending.

What were the issues?

1. Whether the Petitioner is entitled to the refund of pending principal amounts and penalty amounts, along with statutory interest and remainder interest, for Assessment Years 2007-08, 2008-09, and 2009-10, as per the provisions of the Income-tax Act, 1961, particularly Sections 244A and 244A(1A)? Assessee's Contention: The Petitioner argued that they are entitled to the specified refund amounts, including principal, penalty, and statutory interest, and sought directions for the respondents to process and issue these refunds in a time-bound manner. Revenue's Contention: The Revenue, through its Senior Standing Counsel, submitted that the claim for refund is not disputed but could not be processed due to technical reasons. They identified Respondent No. 4, the Assistant Commissioner of Income Tax, Circle 25(1), Central Revenue Building, New Delhi, as the competent officer to process the balance refund and suggested the Petitioner approach this officer with all necessary details.

Which sections of the Income-tax Act were involved?

Section 244A,Section 244A(1A)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[ 3488 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SEVENTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN TP Between PETITIONER AND Tata Teleservices_Limited,. Havrng TAN:HyDT00554B plot No. 1 to 5, Gyan Peeth, Hardware Park, raviryal, R5nga Reddy, Telangina, 5OOOO5 3"p by^ its Authorized Signatory fvrr. sanjeev Mehra, s/o. Dwarka Nath Menra, Generat Manager -.TqI Management and compliance Aged about 53 years, nr.rjry. its reg.istered office at J-eevan Bharti rower - i, loTn iwi, fiq L;onnaught Circus, New Delhi - 110001 EI The Assistant commissioner of rncome Tax, (TDS), circle 2(1), Income Tax Towers, A.c. Guards, Masab rank, Hyderabici, reiihgana soboba 2. The commissioner of lncome Tax TDS, Aayakar Bhavan, Basheerbagh, Hyderabad, Telangana - 500004 3. centralized Processing centre, 1st Floor, prestige Atpha No 4gl1 4gt2, PgqtSlt"garahara Begur, Hosur Rd, Uttarahatti Ho-Oii, e6ngafuru, iiirnataka 560100 4- The Assistant Commissioner of lnqgme tax, Circle 25(1), Central Revenue Building, l.P. Estate, New Delhi - 11OOO2 ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ in the nature of Mandamus or any other appropriate writ, order or direction under Article 226 andlor Article 227 of .the Constitution of lndia, to direct the Respondents to pass the correct and necessary appeal effect orders in quantum and penalty proceedings in accordance with taw and issue the 1 quantum refund due to the Petitioner for A.Y. 2007-08, comprising of Rs' 85,72,4841- alc,ng with up-to-date statutory interest amounting to Rs.76,63,194/-' in a time bountlmanner and also issue the penalty refund of Rs. 53,29,289/-along with up-to-date, statutory interest amounting to Rs. 41,70,169/-, in a time bound manner and to pass such other order or orders including costs of this petition in favour of the p,:titioner and against Respondents as this Honble court may deem fit just and proper in the circumstances of the case- Counsel for thr: Petitioner: Ms. ANANYA KAPOOR, REP. SRI T.PRADYOTH Counsel for the Respondents: SRI RAJA SHEKAR RAO SALVAJI' Sr. SC FOR lT, assisted by Ms. C.ROHINI SMITHA, Jr. SC FOR lT T PETITION 3230F 202 2 Tata Teleservices Limited, Having TAN: HYDT00554B Plot No. 1 to 5, Gyan Peeth, Hardware Park, Raviryal, Ranga Reddy, Telangana, 500005 Rep. by its Authorized Signatory Mr. Sanjeev Mehra, S/o. Dwarka Nath Mehra, Greneral Manager Tix Mahagement -and Compliance Aged-about-53 years,'having its regiitered office at-Jeevan Bharti Tower l, 10th Floor, 124 Connaugtrt Circus, New Delhi - 110001 ...PETITIONER D 1. The Assir;tant Commissioner of lncome Tax (TDS), Circle 2(1), lncome Tax Towers, A.C. Guards, Masab Tank, Hyderabad, Telangana 500004. 2. The Commissioner of lncome Tax (TDS), Aayakar Bhavan, Basheerbagh' Hyderabad, Telangana 500004. 3. Centralizerd Processing Centre, 1st Floor, Prestige Alpha .No 4811 4.8D, Beratenagarahara Begur, Hosur Rd, Uttarahalli Hobli, Bengaluru, Karnataka 560100. 4. The Assi:;tant Commissioner of lncome-Tax, Circle 25(1), Central Revenue Building, l.P. Estate, New Delhi - 110002. Petition under Article 226 of the Constitution of lndia praying that in the circumstances r;tated in the affidavit filed therewith, the High Court may be pleased to issuer a Wrlt in the nature of Mandamus or'any other appropriate writ, order or directior under Article 226 andlor Article 227 of the Constitution of lndia, to direct the Res;pondents to pass the correct and necessary appeal effect orders in quantum and penalty proceedings in accordance with law and issue the quantum refund due to the Petitioner for A.Y. 2008-09, comprising of a pending principal amount of Rs. 74,44,415/- along with upto-date statutory interest due under Section 244A and 244A(1A) of the Act amounting to Rs. 1,17,93,719 inclusive of remainder interest due against the partially refunded amount on 3010712025, in a time bound manner and also issue the penalty refund of Rs. 89,85,188/- along with up-to-date statutory interest amounting. to Rs. 70,30,910/- in a time bound manner and to pass such other order or orders including costs of this Petition in favour of the Petitioner and against Respondents as this , Honourable Court may deem fit, just and proper in the circunistances of the case. Counsel for the Petitioner: Ms. ANANYA KAPOOR, REP. SRI T.PRADYOTH Counsel for the Respondents: SRI RAJA SHEKAR RAO SALVAJI, Sr. SC FOR lT, assisted by Ms. C.ROHINI SMITHA, Jr. SC FOR lT WRIT PETITION NO: 28325 OF 2025 Between: Tata Teleservices Limited, Having TAN: HYDT00554B Plot No. 1 to 5, Gyan Peeth, Hardware Park, Raviryal, Ranga Reddy, Telangana, 500005 Rep. by its Authorized Signatory tMr. Sanjeev Mehra, S/o. Dwarka Nath Mehra, General Manager - Tax Management and Compliane Aged about 53 years, having its registered office at Jeevan Bharti Tower - l, 10th Floor, 124 Connaught Circus, New Delhi - 110001 ...PETITIONER AND 1. The Assistant Commissioner of lncome Tax (TDS), Circle 2(1), Income Tax Towers, A.C. Guards, Masab Tank, Hyderabad, Telangana - 500004 2. The Commissioner of lncome Tax TDS, Aayakar Bhavan, Basheerbagh, Hyderabad, Telangana - 500004 3. Centralized Processing Centre, 1st Floor, Prestige Alpha No 48/1 4812, Beratenagarahara Begur, Hosur Rd, Uttarahalli Hobli, Bengaluru, Karnataka 560100 4. The Assistant Commissioner of lncome tax, Circle 25(1), Central Revenue Building, l.P. Estate, New Delhi - 11O0O2 ...RESPONDENTS { Petitior under Article 226 ot the Constitution of lndia praying that in the circumstance:; stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ in the nature of Mandamus or any other appropriate writ, order or direclion under Article 226 andlor Nlicle 227 of the constitution of lndia, to direct the Respondents to pass the correct and necessary appeal effect orders in quantum and penalty proceedings in accordance with law and issue the quantum refund due to the Petitioner for A.y. 2009-10, comprising of pending principal amoLrnt of Rs. 1,46,94,906/- along with up-to-date statutory interest due under Section 244A and 244A(1A) of the Act amounting to Rs.2,62,45,7791- inclusive of remainder interest due against the partially refunded amount on 30.07.2025, in a time bound manner and also issue the penalty refund of Rs. 2,79,28,5851-along with up{o-date statutory interest due under Section 244A and 2444(1A) of th,t Act amounting Rs. 2,18,54,118/-, in a time bound manner. Counsel for th,: Petitioner: Ms. ANANYA KAPOOR, REp. SRI T.PRADYOTH Counsel for thr: Respondent No.l & 2: SRI RAJA SHEKAR RAO SALVAJI, Sr. SC FOR lT, assisted by Ms. C.ROHINI SMITHA, Jr. SC FOR lT

The Court made the following: COMMON ORDER

(-, / IN'I'HE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD The [fon'ble The Chief Justice Sri Aparesh Kumar Sinsh and The Hon'ble Sri Justice G.M.Mohiuddin Writ Petition Nos.28368. 28323 and28325 of20Z5 Dated: 17.02.2026 W.P.No.2E368 of 2025 Between: 'fata Teleservices Limited tlaving TAN: HYDT00554B, Plot Nos.l to 5, Gyan Peeth, Hardware Park, Raviryal. Ranga Reddy. Rep. by its Authorized Signatory N{r. Sanjeev NIehra, General Manager - Tax Managenrent and Compliance and 'fhe Assistant Commissioner of lncomc Tax (TDS) Circle 2(I), Income Tax Torvers. A.C.Cuards, Masab Tank, llyderabad, Tclangana and 3 otherrs !Y.P.No.28323 of 2025 Tata Teleservices Limited I{aving TAN: HYDT0055.ll}, Plot Nos.l to 5. Gyan Peeth. I{ardware Park, Ravirl'al. Ranga lterltl_r. Rep. by its Authorized Signatory Mr. Sanjecv N{ehra. General Manager - Tax Managemcnt and Compliance and The Assistant Commissioner o[ Income'l'ax ITDS) Circle 2(l), Income Tax Torvers, A.C.Cuards, Masab Tank, Hyderabarl. Telangana and J othcrs W.P.No.28325 of 2025 Tata Teleservices Limited Having TAN: HYDT00554B, Plot Nos.l to 5, Gyan Peeth, Hardwarc Park, Raviryal. Ranga ttcddy, Rep. by its Authorized Signatory Mr. Sanjecv Mehra, Gcneral Manager - Tnr Managcment and Cornpli:rncc antl The Assistant Conrmissioner of lrrconre l'ar (TDS1 Circlc 2(l), lncome Tax 'forvcrs, A.C.Cuards. Masab Tank, flyderabad,'l'elangana :tnd 3 others Petitioncr ...llesponderrts Petitioner Respondcnts ...Petitioner I t ...Rcspondcnts /

2 Colnmon Order: Ms. Ananya Kapoor, learned counsel appears for Mr. T.Pradyoth, learned counsel for the petitioner. Mr. Raja shekar Rao Salvaji, leamed Senior Standing counsel for Income fax Depaftment, duly assisted by Ms. c.Rohini Smitha, learned Junior Standing counsel, appears for respondents No. I and 2. 2. All thcse three writ Petitions relate to rhe claim of refund due, fbr the assessment years 2007-08, 2008-09 and 2009- l0 respr:ctively, on pending principal amount along with up-to-date statut<rrf interest due under Sections z44A and 244(lA) ol rhe lncoine-tax Act, 1961 (for short 'the Act') inclusive of rernainder inter,:st clue against the partially refunded amount in a time bound nlanner and also for penalty refund along with up-to-date statutory intert:st to be paid in a time bound manner. 3. 'fhe prayer in all these writ petitions, which reflect the quanr.urn of refunds claimed against the principal amount and penalty amount with statutory interest and further remainder interest are extracted hereunder: \ \ I l

! '1 { W.P.No.28368 of 2025 a (Assessrnent Year 2007{8) W.P.No.2E323 of 2025 (Assessrnent Year 200849) !V.P.No.28325 of 2025 (Assessment Year 2009-10) Particulars Quantum Refund Penalty Retund Total Principal (+) Rs.3,03,54,593/- Rs.2.79,28,585i - Rs.5,82,83, 178/- Interest (+) ks.z,68,72,1671- Rs.2,18,54,118/- Rs.4,87,26,285/- Amount Refunded (-) Rs.l,62,86,074/- NIL Rs.1,62,86,074/- Total Refund Due Rs.4,09,40,686/- Rs.4,97,82,703/- Rs.9.07.23,389/-

4.

The respondents have f,rled a common counter-affidavit in all these three Writ Petitions.

5.

Learned Senior Standing Counsel appearing for the [ncome Tax Department has, at the outset, submitted that refund amounts totalting to Rs.29,13,35,299/- for the assessment years 2007-08, \ \ i I i: I j j I I .: I ili !i ! T E t Particulars Quantum Refund Penalty Refund Total Amount paid Rs.85.72,484/- Rs.53.29.2891 Rs.1.39.01.773l- lnterest Rs.76.63.194/- Rs.4l,70,169/- Rs.1.18.33,363/- Amount iiefunded NIL NIL NIL TotalRefund Due Rs.1,62,35,678/- Rs.94,99,458/- Rs.2,57,35,136/- Particulars Quantum Refund Penalty Refund Total Principal (+) Rs.1,34,45,305/- Rs,89,85.l88r- Rs.Z,24,30,4931- Interest (+) Rs.1,20,33,755/- Rs.70,30,910t- Rs.1,90,64,665/- Amount Refunded (-) Rs.62,40,9261- NIL Rs.62,40,9261- TotalRefund Due Rs.1,92,38,134/- Rs.1,60,16,098r- Rs.3,52,54,232l-

4 2003-09, 2009-2010 and 2010-11 have been paid to the petitioner, whi,:h is also accepted by the petitioner. 6, The summaries of the pending refunds in quantum as against the lrrincipal and interest and the penalty and the refunds already allorved have been enumerated in the form of a chart furnished by the petitioner, which is extracted hereunder: QUANTTJM REFT'NDS Summarv of pending refunds in Penelty Principal (C) Inter6t (D) Total (C+D) 1007-0t 53r9,2t9 43,X,691 95,E5,982 200E-09 to t5 rflt 73.4539r I 6t 10 i7q 20tr9 -10 2-70-2t stt 2-28Jt.6rr i-O7,60 2fil Totel 7-67-71;.76<

7.

Learned Senior Standing Counsel for lncome Tax \ Department has retbrred to the counter-affidavit to indicate that the .! Summary' of refund already issued to the assessee .-\ I Date of rtreiot Principal Inter6t Total refund issued 2007-0n 10.r0.2025 43.59-675 It_lri53 76.71.02E 1008-09 -10-07_2025 ri[irfr'r] 2.,t0.036 6!.40.926 !00q-r0 30.07.2025 t.56.59587 5_26387 l-62l,6-074 2010-l I 10.07.2025 13.68-09-9s4 54-72-tq8 l{.22.E2.t52 r008-09 2i_ I t -2025 45.00.68E 4s-00-688 l00g-t{r 25.r r.2025 t-17-44-763 t.t7 -!!-764 !0t0-l I 25.1 1.2025 to-26_n7-166 r0.26.07.466 Totel 29.t3.35-299 Summery of oending refunds in Quantuo A\ Principel (A) lnterEt (B) Torel Gt+B) 1007-0fl 42.12l,09 4t-91-744 8{-0.t_55{ 1008-09 74-44.4t5 71-O7-192 r.4t.51,60t 2009-r0 t -46-94-!)06 l-46-21-tlt 2.93-I6-137 Total 5-2S-72-499 claim of refunc is not disputed but because of technical reasons, it I t 5 i could not be processed. He submits that respondent No.4-Assistant Commissioner Income Tax, Circle 25(l), Central Revenue Building, [.P.Estate, New Delhi, would be'the competent officer to process the balance refund being claimed by the petitioner for the aforesaid assessment years. Petitioner may be directed to approach respondent No.4 with the details of the refund claim both under principal amount with interest and the penalty amount with interest as also remainder interest on certain amounts paid earlier.

8.

Learned counsel for the petitioner submits that such application has already been made on 19.l I .2025 before respondent No.4 9. [n the aforesaid set of facts and circumstances, it appears that the issue relates to the processing of the refund claims of past assessment years i.e., 2007-08, 2008-09 and 2009-10. Therefore, the petitioner should approach respondent No.4 with all relevant details of the refund claims within a period of ten days from today. Respondent No.4 would process the claims for refund for the aforesaid assessment years in accordance with law within a \ \ \ \ reasonable period and the admissibte refund be paid along with To, BSR BS Pmci. 6:: statutory interest, if any, preferably within a period of twelve weeks from the date of receipt of a copy of this order'

10.

Needless to S?y, the petitioner shall cooperate in the proceedings for refund claimed on any issue including the computation of interest amount aS may be called upon by respo:rdent No.

4.

I l. The instant Writ Petitions are, accordingly, disposed ot-. No costs. As a sequel, miscellaneous petitions, pending if any, stand closei SRINIVASA REDDY REGISTRAR //'/ OFFICER 1 The Assistant Commissioner of lncome Tax, Circle Tax Towers, A.C. Guards, Masab Tank, 2 The commissioner of lncome Tax TDS, Aayakar Bhavan, Basheerbagh, Hyderabad, Telangana - 500004 3 The centralized Processing centre, 1st Floor, Prestige Alpha No 48/1 4812, Beratenagarahara Begur, Hosur Rd, Uttarahalli-Hobli, Bengaluru, Karnataka 560100 4 The Assistant Commissioner of lncome tax, Circle 25(1), Central Revenue Buildin,T, l.P. Estate, New Delhi - 110002. 5 One CO to SRI T PRADYOTH, Advocate [OPUCI 6 One CC to Ms. C.ROHINI SMITHA, Jr. SC FOR !T TOPUCI 7 one co to sRl RAJA SHEKAR RAo sALVA.t!, sr. sc FoR rr [opuc] 8 Two C[t Copies

\ D HIGH COURT ATED | 1710212026 COMMON ORDER WP.Nos.28368, 28323 and 28325 of 2025 DISPOSING OF ALL THE WRIT PETITIONS, WITHOUT COSTS ttE 5TA ?*t* o 1 LJ 3 1 itAR 2026 J+ * * t-\=\ >("

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