MAHESH SUNNY ENTERPRISES PVT LTD vs. DEPUTY COMMISSIONER OF INCOME TAXCIRCLE 16 (1) DELHI AND ANR.

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W.P.(C)/14263/2024HC DelhiDLHC01069223202416 April 2026Bench: HON'BLE MR. JUSTICE DINESH MEHTA,HON'BLE MR. JUSTICE VINOD KUMAR2 pages
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What did the High Court hold?

The Delhi High Court noted that a formal order accepting rectification and giving credit for tax already paid had been passed on 11.02.2026. While acknowledging the petitioner's submission that interest had not been calculated or paid, the Court closed the writ proceedings. It directed the Assessing Officer/Competent Authority to pay the refund amount due to the petitioner, along with applicable interest under Section 244A and Section 244A(1A) of the Act of 1961, within eight weeks from the date of the order. The Court further stipulated that if the amount was not credited or paid by 15.06.2026, additional interest at 1.5% per month from 15.07.2026 would be levied over and above the statutory interest. The writ petition and pending application were disposed of accordingly.

What were the facts?

The petitioner, Mahesh Sunny Enterprises Pvt Ltd, filed a writ petition before the Delhi High Court challenging an action by the Deputy Commissioner of Income Tax. The Department stated that pursuant to a previous court direction dated 21.01.2026, the Assessing Officer (AO) had passed an order on 11.02.2026 under Section 154/143(1) of the Income Tax Act, 1961, calculating the refund due to the petitioner. However, the petitioner's counsel argued that while a formal order had been passed, no interest had been calculated or paid, nor had the amount been disbursed as per the 11.02.2026 order.

What were the issues?

1. Whether the Assessing Officer has complied with the court's previous directions by passing a formal order calculating the refund amount and disbursing it, including applicable interest, to the petitioner? (Mixed question of law and fact, concerning Section 154/143(1) and Section 244A of the Income Tax Act, 1961). Assessee's Contention: Although a formal order calculating the refund was passed, neither the interest calculation nor the payment of the amount due to the petitioner has been made as per the order dated 11.02.2026. Revenue's Contention: The Assessing Officer has passed an order under Section 154/143(1) of the Act on 11.02.2026 and calculated the amount to be refunded to the petitioner, pursuant to the court's directions.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(1),Section 244A,Section 244A(1A)

AI-generated summary — verify with the full judgment below

$~44 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 14263/2024 CM APPL. 59731/2024

MAHESH SUNNY ENTERPRISES PVT LTD .....Petitioner Through: Mr. Salil Aggarwal Sr. Adv. with Mr. Madhur Aggarwal & Mr. Uma Shankar, Advs.

versus

DEPUTY COMMISSIONER OF INCOME TAXCIRCLE 16 (1) DELHI AND 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 %

16.04.2026 1. Mr. Siddhartha Sinha, learned Senior Standing Counsel for the respondent-Department submitted that pursuant to the directions issued by this Court on 21.01.2026, the Assessing Officer (AO) has passed an order under 154/143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act of 1961’) on 11.02.2026 and has calculated the amount to be refunded to the petitioner. 2. Mr. Salil Aggarwal, learned Senior Counsel submitted that though a formal order calculating the amount payable to the petitioner has been passed, but neither any calculation of interest has been made nor the amount has been paid in terms of the order dated 11.02.2026. 3. Considering that an order accepting rectification and formal order of 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 20/04/2026 at 15:33:18

giving credit of the tax already paid has been passed on 11.02.2026, we close the writ proceedings, while directing the Assessing Officer/Competent Authority to pay the amount of refund due to the petitioner, alongwith applicable interest under Section 244A and Section 244A(1A) of the Act of 1961 within a period of eight weeks from today. 4. In case the amount is not credited to the petitioner’s account or paid to it by 15.06.2026, the amount shall carry additional interest at the rate of 1.5% per month from 15.07.2026 over and above the interest payable under Section 244A and Section 244A(1A) of the Act of 1961. 5. The writ petition along with pending application is disposed of accordingly.

DINESH MEHTA, J

VINOD KUMAR, J APRIL 16, 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 20/04/2026 at 15:33:18

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