MUFG BANK LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 2 1 & ORS.

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W.P.(C)/17087/2024HC DelhiDLHC01091594202410 December 2024Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE TUSHAR RAO GEDELA2 pages
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What did the High Court hold?

The Delhi High Court held that in the absence of any order passed in accordance with law for adjusting or withholding the determined refunds, the said amounts are required to be disbursed to the petitioner. The Court directed that the refunds, as determined for assessment years 2017-18 and 2018-19, along with applicable interest, be disbursed to MUFG Bank Ltd. within a period of eight weeks from the date of the order. This direction is subject to the condition that no contrary order is passed for either adjusting or withholding the refunds. The petitions were disposed of in terms of this direction. The principle established is that determined refunds must be disbursed unless legally stayed or adjusted.

What were the facts?

MUFG Bank Ltd. (the petitioner) filed two writ petitions before the Delhi High Court seeking directions for the disbursement of refunds determined for assessment years 2017-18 and 2018-19. The refund amounts in dispute are Rs. 25,71,65,382/- for AY 2017-18 and Rs. 2,34,97,428/- for AY 2018-19. The Revenue, represented by the Assistant Commissioner of Income Tax, Circle 221 & Ors., accepted notice. The Revenue stated, on instructions, that the determined refund amounts have not been disbursed and are being withheld by the Central Processing Centre (CPC) pending information from the jurisdictional Assessing Officer (AO). The High Court noted that no order had been passed in accordance with law to adjust or withhold these refunds.

What were the issues?

1. Whether the refunds determined for assessment years 2017-18 and 2018-19 are liable to be disbursed to the petitioner, MUFG Bank Ltd., in the absence of any order for adjustment or withholding? The Assessee (Petitioner) contended that the refunds, having been determined, should be disbursed. They sought directions from the High Court to the respondents (Revenue) to disburse these amounts. The Revenue (Respondent) stated that the refunds have not been disbursed and are being withheld by the CPC, awaiting necessary information from the jurisdictional Assessing Officer for processing. They did not explicitly argue against the disbursement of refunds but indicated a procedural hold-up.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

W.P.(C) 17063/2024
W.P.(C) 17087/2024

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

$~278 & 285 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17063/2024

MUFG BANK LTD

.....Petitioner Through: Mr. Hiten Thakkar and Mr. Nikhil Ranjan, Advocates

versus

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 2 1 & ORS

.....Respondent Through: Mr. Puneet Rai, SSC, Mr. Rishabh Nangia, JSC, Mr. Ashvini Kumar, JSC and Mr. Nikhil Jain, Advocate (285) + W.P.(C) 17087/2024

MUFG BANK LTD

.....Petitioner Through: Mr. Hiten Thakkar and Mr. Nikhil Ranjan, Advocates

versus

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 2 1 & ORS

.....Respondent Through: Mr. Puneet Rai, SSC, Mr. Rishabh Nangia, JSC, Mr. Ashvini Kumar, JSC and Mr. Nikhil Jain, Advocate

CORAM:

HON'BLE THE ACTING CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

10.12.2024 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 03/07/2025 at 20:42:21

1.

Issue notice. 2. Learned counsel for the respondent/Revenue accepts notice. 3. The petitioner has filed the present petitions inter alia praying that the directions be issued to the respondents to disburse the refunds determined in respect of assessment years (AY) 2017-18 and 2018-19 (Rs.25,71,65,382/- and Rs. 2,34,97,428/- respectively). 4. Learned counsel appearing for the Revenue states, on instructions, that the amounts of refund as determined, have not been disbursed. The same have been withheld by Central Processing Centre (CPC), awaiting the necessary information from the jurisdictional Assessing Officer (AO) for processing the same. 5. In absence of any order passed in accordance with law for adjusting the refund, the said amounts are required to be disbursed. In view of the above, we direct that the refunds, as determined, be disbursed to the petitioner alongwith applicable interest within a period of eight weeks from date. This is subject to no contrary order being passed for either adjusting or withholding the same. 6. The petitions are disposed of in the aforesaid terms.

ACTING CHIEF JUSTICE

TUSHAR RAO GEDELA, J DECEMBER 10, 2024 Aj

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 03/07/2025 at 20:42:21

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