NORTEL NETWORKS INDIA PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-16-1, NEW DELHI

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W.P.(C)/17968/2024HC DelhiDLHC01098794202409 July 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that it was undisputed that the assessment proceedings for Assessment Years 2003-04 and 2004-05 were time-barred. The Revenue's counsel made a statement on instructions that the refund due to the petitioner, along with interest, would be processed within a period of twelve weeks. The Court acknowledged that the Revenue is bound by this statement. Consequently, the Court found no further orders were required to be passed in the petitions and disposed of them accordingly. The principle established is that when assessment proceedings are time-barred, the assessee is entitled to a refund, and the Revenue is obligated to process such refunds within a reasonable timeframe as assured to the court.

What were the facts?

The petitioner, Nortel Networks India Private Limited, filed writ petitions before the Delhi High Court seeking a declaration that assessment proceedings for Assessment Years 2003-04 and 2004-05 were time-barred and consequently seeking a refund of tax paid along with interest. The Revenue accepted notice and sought time to file an affidavit regarding the disbursement of the refund. The petitions were adjourned on several occasions. The Revenue's counsel, on instructions, stated that the refund due to the petitioner, along with interest, would be processed within twelve weeks. The High Court noted that the Revenue was bound by this statement.

What were the issues?

1. Whether the assessment proceedings for Assessment Years 2003-04 and 2004-05 have become time-barred, and consequently, whether the petitioner is entitled to a refund of tax paid along with interest? (Question of law) Assessee's Contention: The assessment proceedings are time-barred, and the petitioner is entitled to the refund of tax paid along with interest. Revenue's Contention: The Revenue accepted notice and sought time to file an affidavit regarding the timeline for refund disbursement. Subsequently, the Revenue's counsel stated on instructions that the refund along with interest would be processed within twelve weeks.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

W.P.(C) 17958/2024
W.P.(C) 17968/2024

Read from the judgment's own cause title. This page is filed under one of them.

$~26 & 27 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17958/2024 + W.P.(C) 17968/2024

NORTEL NETWORKS INDIA PRIVATE LIMITED

.....Petitioner Through: Mr. Kamal Sawhney, Mr. Nikhil Agarwal, Mr. Puru Medhira, Advocates.

versus

DEPUTY COMMISSIONER OF INCOME TAX & ANR.

.....Respondents Through: Mr. Abhishek Maratha, SSC; Mr. Apoorv Agarwal, JSC; Mr. Parth Samwal, JSC with Ms. Nupur Sharma, Mr. Gaurav Singh, Mr. Bhanukaran Singh Jodha, Ms. Muskaan Goel, Mr. Himanshu Gaur, Advocates.

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

HON'BLE MR. JUSTICE TEJAS KARIA

O R D E R %

09.07.2025

1.

The petitioner has filed the present petitions, inter alia, praying that this court pass an order declaring that the assessment proceedings have become time barred and consequentially allow the petitioner’s claim for refund of the tax paid alongwith interest. 2. Undisputedly, the assessment proceedings for the Assessment Years [AYs] 2003-04 and 2004-05 are time barred. 3. In view of the above, this court had issued notice on 13.01.2025. The 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 11/07/2025 at 11:19:04

learned counsel for the Revenue had accepted notice and had sought time to file an affidavit clearly stating as to when the refund due to the petitioner would be disbursed. 4. Although the petitions had been listed on several occasions thereafter, the same were adjourned and no effective hearing took place. 5. The learned counsel appearing for the Revenue states on instructions that the refund due to the petitioner alongwith interest will be processed within a period of twelve weeks. The Revenue is bound by the said statement. 6. In view of the above, no further orders are required to be passed in the present petitions. The same are disposed of accordingly.

VIBHU BAKHRU, J

TEJAS KARIA, J JULY 9, 2025/sms

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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 11/07/2025 at 11:19:04

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