AJAY CHOWDHURY CAREOF KANCHAN KAMINI KAKAR SPA vs. PR COMMISSIONER OF INCOME TAX INTL TAXATION & ORS.

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W.P.(C)/11095/2025HC DelhiDLHC01050815202518 August 2025Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court did not decide the merits of the case. Instead, based on the submission by the revenue's counsel, Mr. Panda, that the petitioner has the right to file an appeal against the order dated 02.01.2024, the Court directed the petitioner to file an appeal within one week. The Court further directed the appellate authority to decide the appeal within four months of its receipt, considering the peculiar facts of the case involving a refund of Rs. 26,690/-. The appellate authority was also instructed to hear the appeal on merits without considering the issue of limitation, as the appeal was being filed based on the Court's order. No specific finding was given on the interpretation of Rule 37BA or the arbitrary application thereof.

What were the facts?

The petitioner, Ajay Chowdhury, filed a writ petition before the Delhi High Court challenging an Intimation Order dated 02/01/2024 passed under Section 143(1) and a Rectified Intimation Order dated 21/02/2024 passed under Section 154 of the Income Tax Act, 1961. The petitioner contended that these orders were passed with a wrong and arbitrary application of Rule 37BA of the Income Tax Rules, 1962, leading to the withholding of a refund amounting to Rs. 26,690/-. The petitioner sought a writ of certiorari to quash the orders and a writ of mandamus to correctly interpret the word 'Income' and grant the refund. The respondents are the PR Commissioner of Income Tax (International Taxation) and others.

What were the issues?

1. Whether the Intimation Order dated 02/01/2024 passed under Section 143(1) and the Rectified Intimation Order dated 21/02/2024 passed under Section 154 were passed with a wrong and arbitrary application of Rule 37BA of the Income Tax Rules, 1962, leading to the incorrect withholding of a refund of Rs. 26,690/- (question of law and fact, concerning Rule 37BA of the Income Tax Rules, 1962 and Sections 143(1) and 154 of the Income Tax Act, 1961). Assessee's Contention: The orders were passed with a wrong and arbitrary application of Rule 37BA, resulting in the illegal restriction of TDS credit and withholding of refund. The petitioner seeks a correct interpretation of 'Income' as per the rules. Revenue's Contention: The revenue, through Mr. Panda, stated that the petitioner has the right to file an appeal against the order dated 02.01.2024 to the appellate authority, and the same shall be decided by that authority.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 11095/2025 AJAY CHOWDHURY CAREOF KANCHAN KAMINI KAKAR SPA

.....Petitioner Through: Mr. Rajesh Mahna, Mr. Vikram Kakar and Mr. Shiva Narang, Advs.

versus

PR COMMISSIONER OF INCOME TAX INTL TAXATION & ORS.

.....Respondents Through Mr. Debesh Panda, SSC with Mr. Vikramaditya Singh, Ms. Zehra Khan, JSCs and Ms. Yashika Gupta, Mr. Anupam Jain, Ms. Nivedita and Mr. Shivang Berry, Advs. Mr. Vipual Agrawal, SSC with Ms. Sakashi Shairwal, Mr. Akshat Singh JSCs and Mr. Gaorang Ranjan and Ms. Harshita Kotru, Advs.

CORAM:

HON'BLE MR. JUSTICE V. KAMESWAR RAO

HON'BLE MR. JUSTICE VINOD KUMAR

O R D E R %

18.08.2025

1.

This petition has been filed with the following prayers:

“a. Issuance of a writ of certiorari or any other writ, order or direction in the nature to quash Intimation Order dated 02/01/2024 passed U/s 143(1) and Rectified Intimation Order dated 21/02/2024 passed U/s 154, both of the Income Tax Act, 1961 for being passed with wrong and arbitrary application of Rule 37BA of the Income Tax Rules, 1962; b. Issue of a writ of mandamus or any other writ, order or direction to the respondent(s) to correctly interoperate the word “Income” on which the same is sued in terms of Rules and resultantly grant refund amounting Rs. 26,690/- which was withheld by the respondent(s) due to wrong and arbitrary application of Rule 37BA of the Income Tax Rules, 1962; c. Issue a writ of mandamus or any other appropriate writ quashing the illegal restriction of TDS Credit made and proper 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 23/08/2025 at 12:11:59

application of Rule 37BA of the Income Tax Rules, 1962 within the provisions of the Income Tax Act, 1961 by the Respondent.”

2.

The matter was adjourned for today. Mr. Panda states that he has instructions to convey to the Court that the petitioner would be within his right to file an appeal against the Order dated 02.01.2024 passed under Section 143(1) of the Income Tax Act, 1961 to the appellate authority and the same shall be decided by the said appellate authority. 3. The only submission of the learned counsel for the petitioner on the submission of Mr. Panda is that as the amount for which the petition has been filed is for refund of Rs. 26,690/-, the appellate authority may decide the appeal at the earliest. 4. We direct that the petitioner shall file an appeal challenging the Order dated 02.01.2024 within a period of one week from today. 5. As the issue concerns refund of an amount of Rs. 26,690/-, we also direct the appellate authority to decide the appeal within a period of four months on receipt of the appeal filed by the petitioner. 6. With the above, the petition is disposed of. 7. It is made clear that the direction to the appellate authority to decide the appeal within four months is passed in the peculiar facts of this case as it involves an amount of Rs. 26,690/- only. 8. It is also made clear, the appellate authority shall hear the appeal on merits without adverting to the issue of limitation as the appeal is being filed on the strength of this Order. V. KAMESWAR RAO, J

VINOD KUMAR, J AUGUST 18, 2025/ss 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 23/08/2025 at 12:11:59

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