MOL CORPORATION vs. ASSISTANT COMMISSIONER OF INCOME TAX & ORS.

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W.P.(C)/1928/2024HC DelhiDLHC01004789202429 February 2024Bench: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV,HON'BLE MR. JUSTICE YASHWANT VARMA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court acknowledged that the issue of interest claimed by the petitioner required a thorough examination and evaluation of facts, along with a computational exercise. Therefore, the Court did not decide on the merits of the interest claim. Instead, it provided a procedural remedy. The Court directed the petitioner to move an appropriate application before the Assessing Officer within two weeks from the date of the order. The Assessing Officer was directed to consider and dispose of this application in accordance with the law with due expedition. The writ petition was disposed of on these terms, leaving the substantive issue of interest calculation to be addressed by the Assessing Officer.

What were the facts?

The writ petitioner, MOL Corporation, approached the Delhi High Court seeking a refund of INR 517,62,51,652/-. The respondents confirmed that this amount had been refunded. However, the petitioner contended that the refund was short by INR 21,16,70,050/-, representing statutory interest under Section 244A(1)(b) and additional interest under Section 244A(1A) of the Income Tax Act, 1961. The petitioner argued that the refund was calculated solely based on an order dated October 31, 2023, without accounting for the claim for additional interest. The court noted that the issue of interest required examination and computation.

What were the issues?

1. Whether the respondents have failed to provide statutory interest payable under Section 244A(1)(b) of the Income Tax Act, 1961, and additional interest under Section 244A(1A) of the Act, as claimed by the petitioner? (Mixed question of law and fact). Assessee's Contentions: - The petitioner argued that the respondents have short-granted interest under Section 244(1)(b) by INR 7,36,24,365/-, calculated on a principal amount of INR 3,68,12,18,255/- at 0.5% for 4 months (November 2023 to February 2024). - The petitioner further contended that no additional interest under Section 244A(1A) was granted, amounting to INR 13,80,45,685/-, calculated on the same principal at 3/12% for 15 months (December 2022 to February 2024). - The total short grant of interest was claimed to be INR 21,16,70,050/-, based on an ITAT order dated July 5, 2022, which was received by the CIT in August 2022. - The refund was quantified solely based on the October 31, 2023 order, ignoring the claim for additional interest. Revenue's Contentions: - The judgment records that a sum of INR 517,62,51,652/- has been duly refunded and credited to the petitioner's account. No specific argument was recorded regarding the interest calculation dispute.

Which sections of the Income-tax Act were involved?

Section 244A(1),Section 244A(1A),Section 244(1)(b)

AI-generated summary — verify with the full judgment below

$~10 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 1928/2024

MOL CORPORATION

..... Petitioner Through: Mr. Nageswar Rao, Mr. Parth & Mr. Aman Rewaria, Advs.

versus

ASSISTANT COMMISSIONER OF INCOME TAX & ORS.

..... Respondents Through: Mr. Sanjay Kumar, Ms. Easha & Ms. Hemlata Rawat, Advs.

Mr. Asheesh Jain, CGSC with Mr. Gaurav Kumar & Ms. Ria Khanna, Advs. For R-5.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

29.02.2024 O R D E R 1. Pursuant to the last order, Mr. Kumar has apprised us that a sum of INR 517,62,51,652/- has been duly refunded and credited in the account of the writ petitioner. 2. Mr. Rao, learned counsel for the petitioner, however, draws our attention to the following computation on the basis of which it is contended that the respondents have failed to provide interest as statutory payable in terms of Section 244A(1) of the Income Tax Act, 1961 [“Act”] as well as Section 244A(1A) of the Act:- S. No. Particulars Amount (in INR) 1 Short grant of Interest under section 244(1)(b) of the Income Tax Act, 1961 (3,68,12,18,255 x 0.5% x 4 Months from November 2023 to February 2024) 7,36,24,365 2 Non-grant of Additional interest under sectuib 244A(1A) of the Income Tax Act, 1961 (3,68,12,18,255 x 3/12% x 15 Months 13,80,45,685 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 05/03/2024 at 11:07:50

from December 2022 to February 2024) (Please note that ITAT Order dt. 05.07.2022 was received by CIT in August 2022 as per admitted fact in ITA No. 96/2023 filed by Department before this Hon’ble Court Total Amount 21,16,70,050

3.

According to learned counsel, the quantification of refund has been made solely on the basis of the order dated 31 October 2023 and which existed even on the first day when the writ petition was instituted. It is the contention of the learned counsel that all that the respondents have done is to release monies in terms thereof without taking into consideration the claim of the petitioner for additional interest payable. 4. In our considered opinion, since the issue of interest would clearly warrant the facts being duly examined and evaluated as well as computational exercise undertaken, we leave it open to the petitioner to move an appropriate application before the Assessing Officer within a period of two weeks from today. The said application may be duly considered and disposed of in accordance with law with due expedition. 5. The writ petition shall stand disposed of on the above terms.

YASHWANT VARMA, J

PURUSHAINDRA KUMAR KAURAV, J FEBRUARY 29, 2024/neha 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 05/03/2024 at 11:07:50

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