SUMITOMO CORPORATION vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

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W.P.(C)/7581/2024HC DelhiDLHC01031424202424 May 2024Bench: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV,HON'BLE MR. JUSTICE YASHWANT VARMA14 pages

AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petitions based on a statement made by the learned counsel for the respondent (revenue). The revenue, on instructions, stated that subject to verification of all facts and contentions on merits being kept open, the petitioner's claim for refunds would be duly examined and disposed of in accordance with law within a period of six weeks from the date of the order. The Court recorded and accepted this statement. The principle established is that when the revenue undertakes to examine and dispose of a claim within a stipulated time, the High Court may dispose of the writ petition on that basis, keeping all merits open for the authority to consider.

What were the facts?

The petitioner, Sumitomo Corporation, filed multiple writ petitions before the Delhi High Court challenging the inaction of the Deputy Commissioner of Income Tax in processing refund claims. The disputes pertain to various assessment years, including 1993-94, 1996-97, 1998-99, 2006-07, 2007-08, 2010-11, with disputed amounts ranging from Rs. 2,04,506/- to Rs. 5,50,41,200/-. The petitioner had obtained favorable orders from the ITAT, High Court, and Supreme Court, leading to appeal effect orders. However, the refunds due, totaling Rs. 34,12,09,876/-, were allegedly not determined or issued by the revenue. Rectification applications were also filed by the petitioner without final orders. The petitions were filed between February and May 2024.

What were the issues?

1. Whether the respondent revenue has failed to process the refund claims of the petitioner for various assessment years, despite favorable orders from appellate authorities and the Supreme Court, and in light of rectification applications filed by the petitioner? Assessee's Contention: The petitioner argues that the revenue has failed to issue refunds due to the petitioner, despite multiple favorable orders from the Income Tax Appellate Tribunal (ITAT), the High Court, and the Supreme Court. The petitioner highlights that appeal effect orders have been passed, but the consequential refunds have not been determined or issued. Rectification applications filed by the petitioner to correct appeal effect orders have also not been acted upon. Revenue's Contention: The respondent revenue, through its counsel, stated that subject to verification of all facts and contentions on merits being kept open, the claim shall be duly examined and disposed of in accordance with law within a period of six weeks from the date of the order.

AI-generated summary — verify with the full judgment below

Heard together (3 matters)

W.P.(C) 7581/2024

W.P.(C) 7583/2024

W.P.(C) 7586/2024

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

$~63-77 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 7581/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 64 + W.P.(C) 7583/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 65 + W.P.(C) 7586/2024

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 29/05/2024 at 11:54:57

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 66 + W.P.(C) 7588/2024

SUMITOMO CORPORATION NEW DELHI .

versus

DEPUTY COMMISSIONER OF INCOME TAX ..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 67 + W.P.(C) 7590/2024

SUMITOMO CORPORATION NEW DELHI . 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 29/05/2024 at 11:54:57

versus

DEPUTY COMMISSIONER OF INCOME TAX ..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 68 + W.P.(C) 7592/2024

SUMITOMO CORPORATION NEW DELHI .

versus

DEPUTY COMMISSIONER OF INCOME TAX ..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 69 + W.P.(C) 7593/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 70 + W.P.(C) 7595/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 71 + W.P.(C) 7596/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. 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 29/05/2024 at 11:54:57

Sanju Sharma, Advocate. 72 + W.P.(C) 7598/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 73 + W.P.(C) 7600/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 74 + W.P.(C) 7601/2024 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 29/05/2024 at 11:54:57

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 75 + W.P.(C) 7602/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX ..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 76 + W.P.(C) 7603/2024

SUMITOMO CORPORATION

. 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 29/05/2024 at 11:54:57

versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate. 77 + W.P.(C) 7604/2024

SUMITOMO CORPORATION versus

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3.1.2 INTERNATIONAL TAXATION NEW DELHI

..... Respondent

Through: Mr. Ruchir Bhatia, SSC with Mr. Pratyaksh Gupta, JSC, Mr. Anant Maan, JSC and Mr. Sanju Sharma, Advocate.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE AMIT BANSAL

24.05.2024 O R D E R CM APPL. 31526/2024 (Exemption) in W.P.(C) 7581/2024 CM APPL. 31530/2024 (Exemption) in W.P. (C) 7583/2024 CM APPL. 31537/2024 (Exemption) in W.P. (C) 7586/2024 CM APPL. 31540/2024 (Exemption) in W.P. (C) 7588/2024 CM APPL. 31544/2024 (Exemption) in W.P. (C) 7590/2024 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 29/05/2024 at 11:54:57

CM APPL. 31548/2024 (Exemption) in W.P. (C) 7592/2024 CM APPL. 31549/2024 (Exemption) in W.P. (C) 7593/2024 CM APPL. 31554/2024 (Exemption) in W.P. (C) 7595/2024 CM APPL. 31557/2024 (Exemption) in W.P. (C) 7596/2024 CM APPL. 31561/2024 (Exemption) in W.P. (C) 7598/2024 CM APPL. 31566/2024 (Exemption) in W.P. (C) 7600/2024 CM APPL. 31568/2024 (Exemption) in W.P. (C) 7601/2024 CM APPL. 31570/2024 (Exemption) in W.P. (C) 7602/2024 CM APPL. 31575/2024 (Exemption) in W.P. (C) 7603/2024

Allowed, subject to all just exceptions. CM APPL. 31578/2024 (Exemption) in W.P. (C) 7604/2024

Applications stand disposed of. CM APPL. 31527/2024 (64 Days Delay in Refiling) in W.P.(C) 7581/2024 CM APPL. 31531/2024 (64 Days Delay in Refiling) in W.P.(C) 7583/2024 CM APPL. 31538/2024 (64 Days Delay in Refiling) in W.P.(C) 7586/2024 CM APPL. 31616/2024 (64 Days Delay Refiling) in W.P.(C) 7593/2024 CM APPL. 31555/2024 (64 Days Delay in Refiling) in W.P.(C) 7595/2024 CM APPL. 31558/2024 (64 Days Delay in Refiling) in W.P.(C) 7596/2024 CM APPL. 31562/2024 (64 Days Delay in Refiling) in W.P.(C) 7598/2024 CM APPL. 31567/2024 (64 Days Delay in Refiling) in W.P.(C) 7600/2024 CM APPL. 31569/2024 (64 Days Delay in Refiling) in W.P.(C) 7601/2024 CM APPL. 31571/2024 (64 Days Delay in Refiling) in W.P.(C) 7602/2024 CM APPL. 31576/2024 (64 Days Delay in Refiling) in W.P.(C) 7603/2024

CM APPL. 31579/2024 (64 Days Delay in Refiling) in W.P.(C) 7604/2024 Bearing in the mind the disclosures made, the delay of 64 days’ in filing the appeals is condoned. 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 29/05/2024 at 11:54:57

The applications shall stand disposed of.

W.P.(C) 7581/2024 W.P.(C) 7583/224 W.P.(C) 7586/2024 W.P.(C) 7588/2024 W.P.(C) 7590/2024 W.P.(C) 7592/2024 W.P.(C) 7593/2024 W.P.(C) 7595/2024 W.P.(C) 7596/2024 W.P.(C) 7598/2024 W.P.(C) 7600/2024 W.P.(C) 7601/2024 W.P.(C) 7602/2024 W.P.(C) 7603/2024 W.P.(C) 7604/2024 1. The solitary relief which is claimed in the instant writ petitions reads thus:- “a) Issuance of a writ of mandamus directing the Respondent to give effect to the order passed by the ITAT in ITA 3944/Del/1999 dated February 27, 2014 which has been upheld by Hon’ble High Court of Delhi in appeal no. ITA/716/2014 dated November 16, 2015 and Hon’ble Supreme Court in SLP No. 12118/2016 vide order dated July 29, 2016 and consequently issue the refund of Rs. 2,04,506/- for assessment year 1993-94 along with the applicable interest u/s 244A of the Act.”

The petitioners are essentially aggrieved by a failure on the part of the respondents to pass appeal effect orders and to process the consequential refunds. The details pertaining to the claims which still subsist have been set out in the form of a chart which has been handed over by Mr. Sinha, learned counsel appearing for the writ petitioners and which reads thus:- “REFUND SUMMARY CHART [FOR ASSESSMENT YEARS (AYs) IN WHICH NO APPEAL EFFECT ORDER HAS BEEN PASSED

AY Refund due excluding interest Stage of relief Date of request letter 1995-96 Rs. 2,10,16,391 Order dated February 27, 2014, passed by the ITAT in ITA 5883/Del/1998, which has been upheld by Hon’ble High Court of Delhi vide order dated November 16, 2015, in appeal no. ITA/719/2014. The Revenue’s special leave petition [SLP No. 12118/2016] has been dismissed by Hon’ble Supreme Court of India vide order dated July 29, 2016. 15.02.2024 2001-02 Rs. 62,65,126/- Order passed by the ITAT, Delhi dated July 01, 2019, in ITA No. 3695/DEL/2014 (Department’s appeal) and ITA No. 3675/DEL/2014 (Petitioner’s appeal) 27.02.2024 2002-03 Rs. 9,99,58,040/- Order passed by the ITAT, Delhi dated July 01, 2019, in ITA No. 3696/DEL/2014 (department’s appeal) and ITA No. 3676/DEL/2014 (Petitioner’s appeal) 27.02.2024 2003-04 Rs. 1,86,76,947/- Order passed by the ITAT, Delhi dated July 01, 2019, in ITA No. 3713/DEL/2014 (Respondent’s appeal) and ITA No. 3677/DEL/2014 (Petitioner’s appeal) 27.02.2024 2004-05 Rs. 1,15,52,179/- Order passed by the ITAT, Delhi dated July 01, 2019, in ITA No. 3714/DEL/2014 (Department’s appeal) 06.03.2024 2005-06 Rs. 5,99,31,087/- 1) Order of Commissioner of Income-tax (Appeals) dated March 31, 2014, in appeal no. 70/2010-11; 2) Order of Commissioner of Income-tax (Appeals) dated August 18, 2016, in appeal no. 292/2014-15 which has been upheld by Income-tax Appellate Tribunal vide order dated August 25, 2020, in ITA No. 5675/del/2016 and which has further been upheld by Hon’ble High Court of Delhi vide order dated May 15,2023, in ITA No. 276/2023

Note: The issues in both the orders were different. The order at (1) was not challenged before the higher authorities 06.03.2024 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 29/05/2024 at 11:54:57

while the one at (2) was challenged upto the Hon’ble High Court of Delhi 2008-09 Rs. 14,44,393/- Order of Commissioner of Income-tax (Appeals) dated November 20, 2017, in appeal no. 137/2014-15 09.05.2024 2009-10 Rs. 14,35,710/- Order of Commissioner of Income-tax (Appeals) dated November 20, 2017, in appeal no. 272/2014-15. 09.05.2024

REFUND SUMMARY CHART [FOR ASSESSMENT YEARS IN WHICH APPEAL EFFECT ORDER HAS BEEN PASSED]

AY Refund due excluding interest Stage of relief/status of appeal effect order Date of request letter 1992-93 Rs. 17,39,832 Order dated February 27, 2014, passed by the ITAT in ITA 3943/Del/1999, which has been upheld by Hon’ble High Court of Delhi vide order dated November 16, 2015, in appeal no. ITA/714/2014. The Revenue’s special leave petition [SLP No. 12118/2016] has been dismissed by Hon’ble Supreme Court of India vide order dated July 29, 2016. - The Hon’ble ITAT had passed an order in Petitioner’s case on May 31, 2007, for which appeal effect order was passed on March 03, 2009. The ITAT vide its order dated February 27, 2014,in ITA 3943/Del/1999, which is mentioned above, retained the original position which was adopted by it in the order dated May 31, 2007, and therefore, effectively, there is no change in the tax position of the Petitioner after the appeal effect order dated March 03, 2009. Petitioner has filed rectification applicationdated July 10, 2017, with the Ld. AO praying that appeal effect order dated March 03, 2009, be rectified but no rectification order has been passed yet. (refer to pages 132- 138 of the writ petition for the appeal effect order) 15.02.2024 1993-94 Rs. 2,04,506/- Order dated February 27, 2014, passed by 15.02.2024 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 29/05/2024 at 11:54:57

the ITAT in ITA 3944/Del/1999 which has been upheld by Hon’ble High Court of Delhi vide order dated November 16, 2015, in appeal no. ITA/716/2014. The Revenue’s special leave petition [SLP No. 12118/2016] has been dismissed by Hon’ble Supreme Court of India vide order dated July 29, 2016. - The Hon’ble ITAT had passed an order in Petitioner’s case on May 31, 2007, for which appeal effect order was passed on March 03, 2009. However, the appeal effect order was erroneous as it did not take into account the relief granted by the ITAT vide order dated December 16, 2004, in ITA 4049/Del/99. Therefore, a fresh appeal effect order needs to be passed giving effect to order of ITAT dated February 27, 2014. 1996-97 Rs. 40,89,743/- Order dated February 27, 2014, passed by the ITAT in ITA 3945/Del/1999, which has been upheld by Hon’ble High Court of Delhi vide order dated November 16, 2015, in appeal no. ITA/789/2014. The Revenue’s special leave petition [SLP No. 12118/2016] has been dismissed by Hon’ble Supreme Court of India vide order dated July 29, 2016. - The Hon’ble ITAT had passed an order in Petitioner’s case on May 31, 2007, for which appeal effect order was passed on March 03, 2009. The ITAT vide its order dated February 27, 2014, in ITA 3945/Del/1999, which is mentioned above, retained the original position as was adopted by it in the order dated May 31, 2007, and therefore, effectively, there is no change in the tax position of the Petitioner after the appeal effect order dated March 03, 2009. (refer to pages 137-144 of the writ petition for the appeal effect order) 15.02.2024 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 29/05/2024 at 11:54:57

1998-99 Rs. 1,04,70,656/- The relief was granted to the Petitioner at various levels through the following orders: 1) CIT(A) order dated January 27, 2003, in appeal no. 425/00-01. 2) Mutual Agreement Procedure (MAP) was opted by the Petitioner and the MAP order was passed on September 07, 2006. 3) Order of ITAT in ITA No. 419/Del/2001, ITA No. 2559/Del/2003 dated November 30, 2016 4) Orders of Hon’ble High Court of Delhi dated ITA No. 282/2017 and ITA 283/2017 dated May 08, 2017, and August 25, 2017, respectively. - The appeal effect order dated May 09, 2019, was passed taking into account all the orders of the authorities, but no refund has been determined and issued [Refer to pages 198-202 of the writ petition for the appeal effect order] 27.02.2024 2006-07 Rs. 4,58,23,713/- Order of Commissioner of Income-tax (Appeals) dated May 25, 2017, in appeal no. 404/2014-15. [The appeal effect order was passed on August 29, 2017, but rectification of the appeal effect order has been sought by the Petitioner vide rectification application dated November 02, 2017. No rectification order has been passed yet. (refer to pages 35-37 of the writ petition for the appeal effect order, refer to pages 38-41 for the copy of rectification application)] 06.03.2024 2007-08 Rs. 5,50,41,200/- Order of ITAT in ITA No. 5964/DEL/2010 dated July 01, 2019. [The appeal effect order was passed on September 21, 2020, but no refund has been determined and issued (refer to pages 156-157 of the writ petition for the appeal effect order)] 06.03.2024 2010-11 Rs. 35,60,353/- Order passed by ITAT dated July 01, 2019 [ITA No. 1114/Del/2015] and 09.05.2024 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 29/05/2024 at 11:54:57

Order by ITAT dated February 10, 2020 [M.A. No.735/Del/2019] [The appeal effect order was passed on September 21, 2020, but no refund has been determined and issued (refer to pages 213-214 of the writ petition for the appeal effect order)]

Total refund due of Rs. 34,12,09,876”

In view of the aforesaid, Mr. Bhatia, learned counsel appearing for the respondent, on instructions, states that subject to verification of all facts and contentions on merits being kept open, the claim shall be duly examined and disposed of in accordance with law within a period of six weeks from today. The statement so made is recorded and accepted. 4. The writ petitions shall stand disposed of on the above terms.

YASHWANT VARMA, J

AMIT BANSAL, J MAY 24, 2024/RW

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