LOUIS DREYFUS COMPANY INDIA PVT. LTD. (ERSTWHILE LOUIS DREYFUS COMMODITIES INDIA PVT. LTD.) vs. ASSISTANT COMMISSIONER OF INCOME TAX & ORS.

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W.P.(C)/10964/2022HC DelhiDLHC01027461202222 July 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA3 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petition with a direction to the Respondents to pass the appeal effect orders and issue consequential refunds, if any, along with applicable interest thereon within six weeks. The Court explicitly clarified that it had not commented on the merits of the controversy and that the rights and contentions of all parties were left open. The matter was listed for compliance on 12th October, 2022. The primary finding was that the respondents needed to comply with the ITAT orders and process the refund. The ratio decidendi is that statutory authorities must act expeditiously to give effect to appellate orders and grant consequential benefits like refunds, and the High Court can direct such action when there is inaction.

What were the facts?

The petitioner, Louis Dreyfus Company India Pvt. Ltd. (erstwhile Louis Dreyfus Commodities India Pvt. Ltd.), filed a writ petition before the Delhi High Court. The petition sought a direction to the respondents (Assistant Commissioner of Income Tax & Ors.) to give effect to the Income-tax Appellate Tribunal (ITAT) orders for Assessment Years 2005-06, 2008-09, 2009-10, and 2011-12. The petitioner had filed its Income Tax Returns (ITRs) for these years, which were subjected to scrutiny under Section 143(3) of the Income Tax Act, 1961, leading to additions to the returned income. The ITAT had subsequently deleted these additions. Despite multiple representations by the petitioner for granting the refund along with interest under Section 244A of the Act, the respondents had not acted upon the ITAT orders, even after the period for giving appeal effect under Section 153(5) had lapsed.

What were the issues?

1. Whether the Respondents are liable to give effect to the ITAT orders for Assessment Years 2005-06, 2008-09, 2009-10, and 2011-12 and grant the refund along with applicable interest under Section 244A of the Income Tax Act, 1961, as per the petitioner's prayer. Assessee's Contentions: The Petitioner contended that the ITAT had deleted the additions made to its returned income for the specified assessment years. The Petitioner had made several representations to the Respondents to give effect to these appellate orders and grant the requisite refund with interest. The Petitioner further argued that the Respondents had failed to act on these representations, despite the expiry of the time limit for giving appeal effect under Section 153(5) of the Act. Revenue's Contentions: The judgment records that Mr. Ajit Sharma, learned Senior Standing Counsel, accepted notice on behalf of the Respondents. No specific arguments or contentions were recorded for the Revenue in the provided text.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 244A,Section 153(5)

AI-generated summary — verify with the full judgment below

W.P.(C) No.10964/2022 Page 1 of 3 $~69 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 10964/2022 LOUIS DREYFUS COMPANY INDIA PVT. LTD. (ERSTWHILE LOUIS DREYFUS COMMODITIES INDIA PVT. LTD.) ..... Petitioner Through: Mr.S.Vasudevan and Mr.Karanjeet Singh, Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX & ORS. ..... Respondents Through: Mr.Ajit Sharma, Sr.Standing Counsel for the Revenue. % Date of Decision: 22nd July, 2022 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J (Oral): C.M.No.32021/2022 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of. This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/002768

W.P.(C) No.10964/2022 Page 2 of 3 W.P.(C) 10964/2022 1. By way of the present petition, Petitioner seeks a direction to the Respondents to give effect to the ITAT orders in relation to the Assessment Years 2005-06, 2008-09, 2009-10 and 2011-12 and grant the refund due to the Petitioner along with applicable interest in terms of Section 244A of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) 2. Learned counsel for the Petitioner states that the ITR filed by the Petitioner for the Assessment Years 2005-06, 2008-09, 2009-10 and 2011- 12 were subject to tax scrutiny in terms of Section 143(3) of the Act wherein certain additions were made to the returned income in these years. He states that in appeals filed by the Petitioner, the Delhi Bench of Income-tax Appellate Tribunal deleted the additions made to the returned incomes. 3. Learned counsel for the Petitioner states that the Petitioner has made several representations to the Respondents for giving effect to the Appellate orders and grant the requisite refund along with the applicable interest. However, he states that the Respondents have not acted upon the same, despite the fact that the period for giving appeal effect in terms of Section 153(5) of the Act i.e. within three months from the end of the month in which Appellate orders are received by Respondent No. 3 has lapsed. 4. Issue notice. 5. Mr.Ajit Sharma, learned Senior Standing Counsel accepts notice on behalf of the Respondents. 6. Keeping in view the limited prayer made in the present writ petition, the same is disposed of with a direction to the Respondents to pass the appeal effect orders and issue consequential refunds, if any, along with applicable interest thereon within six weeks. This Court clarifies that it has This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/002768

W.P.(C) No.10964/2022 Page 3 of 3 not commented on the merits of the controversy. The rights and contentions of all the parties are left open. List the matter for compliance on 12th October, 2022. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J JULY 22, 2022 KA This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/002768

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