VIKRAM DHIRANI vs. DCIT CENTRAL CIRCLE 7 DELHI & ANR.

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W.P.(C)/8932/2026HC DelhiDLHC01028645202608 July 2026Bench: HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA,HON'BLE MR. JUSTICE DINESH MEHTA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court directed the Assessing Officer/Competent Officer to consider the petitioner's representations dated October 27, 2025, and November 12, 2025, on or before August 31, 2026. The court further directed the officer to pay the applicable interest, providing the calculations thereof to the petitioner. The court noted that if any of the petitioner's grievances persisted after this consideration, he would be free to pursue available legal remedies. The judgment did not decide the substantive issue of entitlement to interest on self-assessment tax, as it was pending before a larger bench, but rather disposed of the writ petition by directing consideration of the representations and payment of applicable interest.

What were the facts?

The petitioner, Vikram Dhirani, filed a writ petition before the Delhi High Court seeking a mandamus directing the respondents (DCIT Central Circle 7, Delhi & Anr.) to consider his representations regarding the payment of interest on a refund, as per Section 244A/244A(1A) of the Income Tax Act, 1961. The petitioner had made representations on October 27, 2025, and November 12, 2025, which he contended remained unheeded. The revenue argued that while interest is payable on the refunded amount, no interest can be paid on the portion of tax refunded that was paid as self-assessment tax. The revenue further stated that the issue of an assessee's right to interest on self-assessment tax is pending before a larger bench, as the provision allowing such interest was introduced in 2016, and the assessment year in question is 2007-08.

What were the issues?

1. Whether the petitioner is entitled to interest on the entire amount refunded, including the portion paid as self-assessment tax, for the assessment year 2007-08? (Question of law, turning on Section 244A/244A(1A) of the Income Tax Act, 1961). Assessee's Contentions: - The petitioner is statutorily entitled to interest on the refund under Section 244A/244A(1A) of the Act of 1961. - The representations made by the petitioner have not been considered by the Competent Authority. Revenue's Contentions: - Interest can be paid on the refunded amount, but not on the part of the tax refunded which was paid as self-assessment tax. - The issue regarding the assessee's right to get interest on self-assessment tax is pending before a larger bench. - The provision allowing interest on self-assessment tax was introduced in 2016, and the assessment year in question is 2007-08, making the claim doubtful.

Which sections of the Income-tax Act were involved?

Section 244A,Section 244A(1A)

AI-generated summary — verify with the full judgment below

$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 8932/2026

VIKRAM DHIRANI

.....Petitioner Through: Mr. Ruchesh Sinha and Ms. Monalisa Mity, Advs.

versus

DCIT CENTRAL CIRCLE 7 DELHI & ANR. ....Respondents Through: Mr. Sunil Agarwal, SSC with Ms. Monica Benjamin, Mr. Gibran Naushad, JSCs.

CORAM:

HON'BLE MR. JUSTICE DINESH MEHTA

HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA

O R D E R %

08.07.2026 CM APPL. 41886/2026 (Exemption) 1. Allowed, subject to all just exceptions. 2. Application stands disposed of. W.P.(C) 8932/2026 3. Issue notice. Mr. Sunil Agarwal, learned Senior Standing Counsel for the respondents accepts notice. 4. By way of this instant petition, the petitioner has prayed a mandamus to the respondents to consider the petitioner’s representation in relation to payment of interest on refund as payable under Section 244A/244A(1A) of the Income Tax Act, 1961 (hereinafter referred as „the Act of 1961‟). 5. Inviting Court’s attention towards the representation which the petitioner has moved (Annexure-3) on 27.10.2025 followed by another representation dated 12.11.2025, learned counsel submitted that the same 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 13/07/2026 at 15:52:35

have remained unheeded by the Competent Authority and the petitioner is still waiting for the payment of interest, to which he is statutorily entitled. 6. Mr. Sunil Agarwal, learned Senior Standing Counsel appearing on behalf for the Department submitted that though the petitioner is entitled to get interest under Sections 244A/244A(1A) of the Act of 1961 on the amount refunded but no interest can be paid on that part of the tax refunded which the petitioner had paid as a self assessment tax. 7. In this regard, he submitted that the issue regarding assessee’s right to get interest on the self assessment tax is pending consideration before the larger bench as the provision allowing interest on self assessment tax came to be introduced only in the year 2016. He added that since the assessment year in question is 2007-08, the petitioner’s right of claiming interest on self assessment tax that he had paid is really doubtful. 8. Having heard learned counsel for the parties, we deem it expedient to dispose of the present writ petition with the direction to the Assessing Officer/Competent Officer to consider petitioner’s representations dated 27.10.2025 and 12.11.2025, on or before 31.08.2026 and pay the applicable interest while giving the calculations thereof to the petitioner. 9. Needless to observe that in case, any of the petitioner’s grievance still persist he shall be free to take recourse to legal remedies available to him. 10. The petition stands disposed of accordingly along with pending applications.

DINESH MEHTA, J.

RAJNEESH KUMAR GUPTA, J. JULY 8, 2026/neelam 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 13/07/2026 at 15:52:35

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