M/S NMDC ENERGY PJSC (ERSTWHILE M/S NATIONAL PETROLEUM CONSTRUCTION COMPANY) vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE INT. TAX 2(2)(2), CIVIC CENTRE

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W.P.(C)/6925/2025HC DelhiDLHC01032183202521 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 directed the concerned income tax authorities to process the petitioner's claim for refund, including statutory interest, in accordance with the law. The Court emphasized that this processing should be done expeditiously, preferably within a period of eight weeks from the date of the order. The Court found no impediment to the processing of the refund claim as stated by the Revenue. The ratio of the decision is that where the Revenue concedes that there is no impediment to processing a refund claim, the authorities are bound to act expeditiously and in accordance with law, and a writ of mandamus can be issued to ensure compliance. The petition was allowed in terms of the directions issued.

What were the facts?

The petitioner, M/s NMDC Energy PJSC (erstwhile M/s National Petroleum Construction Company), filed a writ petition before the Delhi High Court seeking a mandamus directing the Deputy Commissioner of Income Tax to issue a refund of Rs. 21,07,19,508/- along with statutory interest under Section 244A of the Income Tax Act. The petitioner contended that the respondent's action in not issuing the refund was unjust, arbitrary, and contrary to the provisions of the Act. The assessment year(s) are not specified. The respondent, represented by its counsel, fairly stated that there was no impediment to processing the refund claim in accordance with the law.

What were the issues?

1. Whether the petitioner is entitled to a writ in the nature of mandamus directing the Respondent to issue a refund of Rs. 21,07,19,508/- along with up-to-date statutory interest under Section 244A of the Income Tax Act, as the action of the Respondent is alleged to be unjust, arbitrary, and contrary to the provisions of the Income Tax Act. Assessee's Contention: The petitioner argued that the respondent's inaction in processing its refund claim was illegal and sought a direction for the immediate release of the refund with statutory interest. The petitioner relied on the Income Tax Act for its claim. Revenue's Contention: The learned counsel for the Revenue fairly stated that there was no impediment in processing the petitioner’s claim for refund in accordance with law.

Which sections of the Income-tax Act were involved?

Section 244A

AI-generated summary — verify with the full judgment below

$~56 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6925/2025 M/S NMDC ENERGY PJSC (ERSTWHILE M/S NATIONAL PETROLEUM CONSTRUCTION COMPANY) .....Petitioner Through: Dr Shashwat Bajpai and Mr Sarthak Tripathi, Advocates. versus DEPUTY COMMISSIONER OF INCOME TAX CIRCLE INT. TAX 2(2)(2), CIVIC CENTRE .....Respondent Through: Mr Apoorv Agarwal, Mr Parth Samwal, Ms Nupur Sharma, Mr Gaurav Singh, Mr Bhanukaran Singh Jodha, Ms Muskaan Goel and Mr Himanshu Gaur, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 21.05.2025 CM APPL. 31374/2025 (Exemption) 1. Exemption is allowed, subject to all just exceptions. 2. The application stands disposed of. W.P.(C) 6925/2025 3. The petitioner has filed the present petition, inter alia, praying as under: “a) Issue a writ in the nature of mandamus directing the Respondent to issue refund of amount of Rs. 21,07,19,508/- along with up-to-date statutory interest u/s 244A as the action of the Respondent is unjust, arbitrary and contrary to the provisions of the Income Tax Act. 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 22:38:54

b) Issue any other Writ, order or Direction which this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.” 4. The learned counsel appearing for the Revenue fairly states that there is no impediment in processing the petitioner’s claim for refund in accordance with law. 5. In view of the above, the concerned authorities are directed to process the petitioner’s claim for refund along with the interest in accordance with law as expeditiously as possible and preferably within a period of eight weeks from today. 6. The petition is allowed in the aforesaid terms. VIBHU BAKHRU, J TEJAS KARIA, J MAY 21, 2025 RK 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 22:38:54

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