M/S CARRIER AIR CONDITIONING REFRIGERATION LIMITED vs. PRINCIPAL COMMISSIONER OF INCOME TAX AND OTHERS

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CWP/16487/2021HC Punjab & HaryanaPHHC01077129202111 November 2021Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE PANKAJ JAIN3 pages
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What did the High Court hold?

The High Court of Punjab and Haryana at Chandigarh disposed of the writ petition. The Court noted that the petitioner's Form 3 was rectified, showing an entitlement to a refund of Rs. 6 crores, but no payment had been made. The respondents could not deny these factual assertions. Therefore, the Court directed the respondents to pay the refund to the petitioner within 15 days from the receipt of a certified copy of the order, if the petitioner was indeed entitled to it. The Court did not delve into the merits of the tax credit claims themselves but focused on ensuring the refund was processed if the rectification confirmed entitlement. Any pending miscellaneous applications were also disposed of.

What were the facts?

The petitioner, M/s Carrier Airconditioning Refrigeration Limited, filed a writ petition seeking directions to the respondents (Principal Commissioner of Income Tax and others) to rectify Form 3 dated April 16, 2021. The rectification was sought to allow credit for all taxes paid or deducted for assessment year 2014-15 and to refund the excess amount with interest. Previously, on August 27, 2021, the Court had noted that the ITBA e-filing portal was not functional and the process was likely to take time. The petitioner was directed to make a further payment of Rs. 22,44,555/- while being denied a refund of Rs. 5,29,09,130/-. On November 10, 2021, the respondents stated that the petitioner's claim had merit but there was a technical glitch. Subsequently, on November 11, 2021, the petitioner's Form 3 was rectified, showing entitlement to a refund of Rs. 6 crores, but no payment had been made. The respondents could not deny these assertions.

What were the issues?

1. Whether the respondents should be directed to rectify Form 3 to allow credit of all taxes paid/deducted for assessment year 2014-15 and refund the excess amount with interest to the petitioner, as per the Income Tax Act, 1961? Assessee's Contention: The petitioner sought directions for rectification of Form 3 to include all tax credits for AY 2014-15 and to receive the resultant refund with interest. They highlighted that despite rectification showing an entitlement to a refund of Rs. 6 crores, no payment had been made. The petitioner relied on the previous orders of the Court and the stated position of the respondents that the claim had merit but was facing technical issues. Revenue's Contention: The respondents acknowledged that the petitioner's claim had merit but cited a technical glitch as the reason for the delay in rectification and refund. They accepted notice and were directed to clarify their stand. On the final date, they were not in a position to deny the petitioner's factual assertions regarding the non-payment of the refund.

Which sections of the Income-tax Act were involved?

None explicitly mentioned in the provided text, beyond general reference to the Income Tax Act, 1961.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 234 CWP-16487-2021 (O&M) Decided on : November 11, 2021 M/s Carrier Airconditioning Refrigeration Limited ....Petitioner VS Principal Commissioner of Income Tax and others ....Respondents CORAM: HON'BLE MR. JUSTICE AJAY TEWARI

HON'BLE MR. JUSTICE PANKAJ JAIN Present: Mr. Nageshwar Rao, Advocate and Mr. Ashim Aggarwal, Advocate for the petitioner. Mr. T.K.Joshi, Standing counsel for the respondents. **** AJAY TEWARI, J.(Oral) 1. This petition has been filed for issuance of directions to respondents to forthwith rectify Form 3 dated 16.4.2021 (Annexure P-7) by allowing credit of all taxes paid/deducted under provisions of Income Tax Act, 1961 in respect of petitioner Assessment for assessment year 2014-15 and refund excess amount with interest to petitioner. 2. On 29.9.2021 the following order was passed :- “On 27.8.2021 the following order was passed :- “Learned counsel for the petitioner has referred to CWP No. 9277-2020 passed on 20.07.2021 by this Court whereby direction was sought to the respondents to rectify Form 3. The matter was disposed of as the senior standing counsel for the respondents has informed that after verification, it has been clarified that there was no wrong claim by the assessee and credit for this ANURADHA 2021.11.12 13:24 I attest to the accuracy and integrity of this document

CWP-16487-2021 (O&M) -2- challan has been given in AU 2007-2008. Further ITBA e-filing portal is not functional and the process is likely to take some time. Learned counsel states that Vivad se Vishwas Scheme is to come to an end on 31.08.2021. The petitioner has now been directed to make further payment of Rs.22,44,555/- while denying refund of Rs.5,29,09,130/-. Notice of motion for 31.08.2021. On asking of the Court, Mr. Tajender Joshi, Advocate accepts notice on behalf of the respondents. Learned counsel for the respondents shall clarify their stand on the next date of hearing.” Today, again learned counsel for the respondents states that on merits the claim of the petitioner has to be accepted but there is some technical glitch. However a period of more than one month has elapsed. In these circumstances, respondents are directed to finalize the issue before the next date of hearing. Adjourned to 10.11.2021.” 3. Learned counsel for the petitioner state that thereafter, on the next day Form 3 of the petitioner was rectified and the petitioner was shown to be entitled to get refund of Rs. 6 crores but nothing has been paid till date. 4. Learned Standing Counsel appearing on behalf of the respondents is not in a position to deny these factual assertions. 5. In view of these facts and circumstances, we deem it appropriate to dispose of this writ petition with a direction to the respondents that in case the petitioner is entitled to refund the same be paid to him within 15 days from the receipt of certified copy of this order. ANURADHA 2021.11.12 13:24 I attest to the accuracy and integrity of this document

CWP-16487-2021 (O&M) -3- 6. Since the main case has been decided, the pending civil miscellaneous application, if any, also stands disposed of. (AJAY TEWARI)

JUDGE (PANKAJ JAIN) JUDGE November 11th , 2021 anuradha Whether speaking/reasoned - Yes Whether reportable - No ANURADHA 2021.11.12 13:24 I attest to the accuracy and integrity of this document

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