MARELLI POWERTRAIN INDIA PVT LTD (FORMERLY KNOWN AS MAGNETI MARELLI POWERTRAIN INDIA PVT LTD) vs. DEPUTY COMMISSIONER OF INCOME TAX & ORS.

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W.P.(C)/18698/2025HC DelhiDLHC01099360202507 January 2026Bench: HON'BLE MR. JUSTICE VINOD KUMAR,HON'BLE MR. JUSTICE DINESH MEHTA2 pages
AI SummaryPartly Allowed

What did the High Court hold?

The Delhi High Court disposed of the Writ Petition based on the fair submission made by the respondent Income Tax Department. The Court directed the respondent/Income Tax Department to refund the amount recovered in excess of 20% of the outstanding demand, as per the CBDT circulars. The respondents were also directed to pay applicable interest on this excess amount by 28.02.2026. The petitioner was advised to file a representation before the Assessing Officer (AO) detailing the refundable amount. The AO was then to verify this claim and process the refund along with applicable interest in accordance with the law. The Court did not explicitly leave any issue undecided, as the matter was resolved by consent and the department's undertaking.

What were the facts?

The petitioner, Marelli Powertrain India Pvt Ltd, filed a Writ Petition before the Delhi High Court challenging the recovery of an amount exceeding 20% of the outstanding demand by the respondents (Deputy Commissioner of Income Tax & Ors.). The petitioner contended that this recovery was contrary to CBDT Office Memoranda dated 29.02.2016 and 31.07.2017, as well as judgments of the High Court. The assessment years are not specified in the judgment. The dispute concerns the recovery of tax demand.

What were the issues?

1. Whether the recovery of an amount exceeding 20% of the outstanding demand by the respondent Income Tax Department is contrary to the CBDT Office Memoranda dated 29.02.2016 and 31.07.2017 and relevant High Court judgments? (Question of law and fact, concerning the interpretation and application of CBDT circulars and judicial precedents). Assessee's Contention: The petitioner argued that the recovery of more than 20% of the outstanding demand was illegal and in violation of the cited CBDT circulars and High Court judgments. Revenue's Contention: The respondent Income Tax Department, through its counsel, fairly submitted that the amount recovered in excess of 20% of the outstanding demand would be refunded to the petitioner within six weeks.

AI-generated summary — verify with the full judgment below

$~6 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 18698/2025 MARELLI POWERTRAIN INDIA PVT LTD (FORMERLY KNOWN AS MAGNETI MARELLI POWERTRAIN INDIA PVT LTD) .....Petitioner Through: Mr. Aditya Vohra, Sr. Adv. with Mr. Tanmay Dhraksh, Adv. versus DEPUTY COMMISSIONER OF INCOME TAX & ORS. .....Respondents Through: Mr. Shlok Chandra, SSC, Ms. Naincy Jain, Ms. Madhavi Shukia, JSCs and Mr. Anshuman Jindal, Adv. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR O R D E R %

07.01.2026 1. By way of the present Writ Petition, the petitioner has raised a grievance that the respondents have recovered an amount more than 20% of the outstanding demand which is contrary to the CBDT Office Memorandum F.NO.404/72/93-ITCC dated 29.02.2016 and F.NO.404/72/93 -ITCC dated 31.07.2017, so also judgments passed by this Court. 2. Mr. Shlok Chandra, learned counsel for the respondents on instruction fairly submitted that the amount recovered in excess of 20% of the outstanding demand will be refunded to the petitioner within a period of six weeks. 3. In view of the fair stand taken by the respondents, instant Writ 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 12/01/2026 at 12:24:45

Petition is disposed of by directing the respondent/Income Tax Department to refund the amount, which is in excess as per the CBDT circular. The respondents shall also pay the applicable interest thereupon latest by 28.02.2026. 4. The petitioner may file representation/letter before the Assessing Officer(AO) indicating therein, the refundable amount, which according to him has been recovered in excess of 20% of the demand. The AO shall verify the same and refund the amount along with applicable interest in accordance with law. 5. The petition is disposed of accordingly alongwith all interlocutory applications (if any). DINESH MEHTA, J. VINOD KUMAR, J. JANUARY 7, 2026/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 12/01/2026 at 12:24:45

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