AON CONSULTING PRIVATE LIMITED vs. ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE 1(1) & ORS.

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W.P.(C)/3768/2025HC DelhiDLHC01016092202520 May 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petition by directing the concerned income-tax authorities to process the petitioner's refund, including applicable statutory interest under Section 244A of the Income-tax Act, 1961, as expeditiously as possible, and in any event, within a period of twelve weeks from the date of the order. The Court clarified that this direction would not prevent the Revenue from adjusting any outstanding demands against the refund, provided such adjustments are made in accordance with the law and within the stipulated twelve-week period. Crucially, the Court emphasized that before making any adjustment of outstanding demands, the petitioner must be given due notice. If the order is not complied with within the specified period, the petitioner is at liberty to apply afresh, including initiating proceedings for disobedience of the Court's order.

What were the facts?

The petitioner, Aon Consulting Private Limited, filed a writ petition before the Delhi High Court seeking a direction to the respondents (Assistant Commissioner of Income-tax Circle 1(1) & Ors.) to credit a refund of Rs. 1,86,67,389, pertaining to its predecessor, along with statutory interest under Section 244A of the Income-tax Act, 1961. The refund was determined by an order dated February 23, 2024. The Revenue, represented by the Standing Counsel, indicated that there were outstanding demands against which the refund might be adjusted and sought time to place a list of such demands on record. The Court noted that no adjustment had been made as of the hearing date.

What were the issues?

1. Whether the Revenue should be directed to credit the refund of Rs. 1,86,67,389 along with statutory interest under Section 244A of the Income-tax Act, 1961, to the petitioner's bank account. Assessee's Contention: The petitioner sought a writ of mandamus to compel the Revenue to release the determined refund with applicable interest without further delay. Revenue's Contention: The Revenue stated that there were outstanding demands against which the refund was intended to be adjusted and sought time to provide details of these demands. The Revenue also indicated that any adjustment would be communicated to the petitioner.

Which sections of the Income-tax Act were involved?

Section 244A

AI-generated summary — verify with the full judgment below

$~65 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 3768/2025 AON CONSULTING PRIVATE LIMITED .....Petitioner Through: Mr Manuj Sabharwal with Mr Devvrat Tiwari and Ms Drona Negi, Advocates. versus ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE 1(1) & ORS. .....Respondents Through: Mr Vipul Agrawal, SSC. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 20.05.2025 1. The petitioner has filed the present petition, inter alia, praying as under: “a. Issue a writ in the nature of mandamus or other appropriate writ(s), order(s) directing the Respondents to credit the refund of Rs. 1,86,67,389 (pertaining to the predecessor) determined vide order dated 23.02.2024 (Annexure P-1) along with applicable statutory interest under s. 244A(1) and s. 244A(1A) of the Income-tax Act, 1961 (till the date of such credit) to the bank account of the Petitioner through electronic transfer or by manual refund voucher/ cheque expeditiously, after taking necessary approvals from Respondents, without any further delay.” 2. The learned counsel appearing for the Revenue submits that he has information regarding outstanding demands against which the refund is required to be adjusted. He has handed over a copy of the statement. 3. He seeks further time to place on record the list of demands against 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 01/07/2025 at 22:39:18

which the refund is proposed to be adjusted. He submits that if any adjustment is made, the same would be communicated to the petitioner. 4. The present petition was listed on 26.03.2025. The learned counsel for the Revenue had sought time to take instructions. It is clear from the submissions made on behalf of the Revenue that no adjustment has been made against the refunds due to the petitioner as yet. 5. In view of the above, we consider it apposite to dispose of the present petition by directing the concerned authorities to process the petitioner’s refund along with applicable interest as expeditiously as possible, and in any event, within a period of twelve weeks from date. This would not preclude the Revenue from adjusting any demands due albeit in accordance with law within the said period. 6. We also consider it apposite to note that there is no ambiguity that before making any adjustment, the petitioner is required to be given due notice of any adjustment of the outstanding demands. 7. The petition is disposed of with the aforesaid directions. 8. It is clarified that if the order is not complied with within the period as specified, the petitioner would be at liberty to apply afresh including taking steps for initiation of proceedings for disobedience of the orders of the Court. VIBHU BAKHRU, J TEJAS KARIA, J MAY 20, 2025/tr Click here to check corrigendum, if any 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 01/07/2025 at 22:39:18

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