KAPEDOME ENTERPRISES LTD (FORMERLY KNOWN AS ESTEEM FINVENTURES LTD) vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 13(1) DELHI & ANR.

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W.P.(C)/13210/2024HC DelhiDLHC01062918202412 January 2026Bench: HON'BLE MR. JUSTICE VINOD KUMAR,HON'BLE MR. JUSTICE DINESH MEHTA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petition. The Court directed the Assistant Commissioner of Income Tax, Central Circle-2, Chandigarh, or any other competent officer, to pass the requisite rectification order by 31.03.2026. The Court noted that the revenue's counsel had submitted that necessary action would be taken and a rectification order would be passed within four weeks. If any of the petitioner's grievances still subsisted after the rectification order, they were free to pursue appropriate legal remedies. In case an amount was found refundable, it was to be paid along with applicable interest. The Court did not decide on the merits of the illegal adjustment but relied on the revenue's undertaking to rectify the error.

What were the facts?

The petitioner, Kapedome Enterprises Ltd. (formerly Esteem Finventures Ltd.), filed a writ petition before the Delhi High Court. The petition challenged an intimation dated 27.02.2024 issued under Section 245 of the Income Tax Act, 1961, by Respondent No. 2. This intimation illegally adjusted a refund of Rs. 44,71,980 due for Assessment Year 2023-24 against a non-existent tax demand for Assessment Year 2011-12. The petitioner sought quashing of this intimation, direction for expeditious refund for AY 2023-24 with interest, and deletion of the non-existent demand for AY 2011-12 from the Income Tax Portal. The respondents' counsel produced a letter indicating that necessary action would be taken and a rectification order would be passed within four weeks.

What were the issues?

1. Whether the intimation dated 27.02.2024, issued under Section 245 of the Income Tax Act, 1961, illegally adjusted the refund of Rs. 44,71,980 due for AY 2023-24 against a non-existent tax demand for AY 2011-12, in violation of statutory mandate? Assessee's Contentions: The petitioner argued that the adjustment of the refund was illegal as it was against a non-existent demand. They sought quashing of the intimation, release of the refund for AY 2023-24 with interest, and deletion of the erroneous demand for AY 2011-12. Revenue's Contentions: The revenue's counsel submitted that a letter dated 10.01.2026 indicated that the needful process would be undertaken and that necessary action would be taken, with a rectification order to be passed within four weeks.

Which sections of the Income-tax Act were involved?

Section 245,Section 143(1)

AI-generated summary — verify with the full judgment below

$~25 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13210/2024 KAPEDOME ENTERPRISES LTD (FORMERLY KNOWN AS ESTEEM FINVENTURES LTD)

.....Petitioner Through: Mr. Rohit Jain, Mr. Aniket D. Agrwal & Mr. Abhisek Singhvi, Advs.

versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 13(1) DELHI & ANR.

.....Respondents Through: Mr. Siddhartha Sinha. SSC with Ms. Easha Gurung, JSC.

CORAM:

HON'BLE MR. JUSTICE DINESH MEHTA

HON'BLE MR. JUSTICE VINOD KUMAR

O R D E R %

12.01.2026 1. The instant writ petition has been preferred seeking the following reliefs: “I. quashing the intimation dated 27.02.2024 issued under section 245 of the Act by Respondent No.2 illegally adjusting the refund of Rs.44,71,980 due for assessment year 2023-24, against the non- existent tax demand for assessment year 2011-12, in blatant violation of the statutory mandate; and II. directing the Respondents to expeditiously grant the refund determined vide intimation dated 12.01.2024 issued under section 143(1) of the Act for the assessment year 2023-24, along with applicable interest, as per law; and III. directing the Respondents to delete the non-existent demand pertaining to assessment year 2011-12 reflecting on the Income Tax Portal of the Petitioner; and” 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 04/06/2026 at 02:09:13

2.

Learned Senior Standing Counsel appearing on behalf of the respondents produced before the Court a copy of letter dated 10.01.2026, inter-alia, indicating that the needful process will be undertaken which may take some time. 3. Pursuant to instructions given by the Assessing Officer, learned Senior Standing Counsel submitted that necessary action will be taken and rectification order will be passed within four weeks. 4. The present writ petition is disposed of with a direction to the Asstt. Commissioner of Income Tax, Central Circle-2, Chandigarh or any other competent officer, to pass the requisite rectification order latest by 31.03.2026. 5. If any of the petitioner’s grievance still subsists, he shall be free to take up appropriate remedies in accordance with law. 6. In case amount found refundable, then the same alongwith applicable interest shall also be paid. 7. The petition alongwith pending application, if any, stands disposed of.

DINESH MEHTA, J

VINOD KUMAR, J JANUARY 12, 2026/sr

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 04/06/2026 at 02:09:13

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