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

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W.P.(C)/3771/2025HC DelhiDLHC01016095202520 May 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA2 pages
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What did the High Court hold?

The Delhi High Court disposed of the writ petition by directing the concerned authorities to process the petitioner's refund, including applicable interest, 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 demands due, provided such adjustments are made in accordance with the law 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. The court did not explicitly decide on the rectification application, but the overall direction for processing the refund implicitly addresses the underlying dispute.

What were the facts?

The petitioner, Aon Consulting Private Limited, filed a writ petition before the Delhi High Court seeking a mandamus to direct the respondents (Assistant Commissioner of Income-Tax and others) to credit a refund determined by an order dated 03.04.2024, along with statutory interest under Section 244A of the Income-tax Act, 1961. The petitioner also sought directions for the disposal of a rectification application dated 15.03.2019. The Revenue, represented by the Standing Counsel, indicated that there were outstanding demands against which the refund might be adjusted and sought time to provide a list of these demands. The court noted that no adjustment had been made to the refunds due to the petitioner as of the hearing date.

What were the issues?

1. Whether a writ of mandamus should be issued directing the Revenue to credit the determined refund along with statutory interest to the petitioner's bank account, and to expedite the disposal of the petitioner's rectification application by way of a speaking order. Assessee's Contention: The petitioner sought a writ of mandamus to compel the credit of the refund and interest, and to ensure the timely disposal of their rectification application. The petitioner relied on the determination of the refund vide the order dated 03.04.2024. Revenue's Contention: The Revenue acknowledged the existence of outstanding demands against which the refund might be adjusted and sought time to place on record the list of such demands. The Revenue stated 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

$~66 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 3771/2025 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), DELHI & 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 determined vide order dated 03.04.2024 (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 expediously, after taking necessary approvals from Respondents, without any further delay; and/ or b. Issue a writ in the nature of mandamus, or other appropriate writ(s), order(s) or issue directions for disposing of the rectification application dated 15.03.2019 (Annexure P-3) filed before the Respondent No. 1 by way of a speaking order and for making necessary changes in the records of Respondents.” 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. 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

3.

He seeks further time to place on record the list of demands against 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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