TEXACO OVERSEAS P LTD vs. ACIT, CIRCLE 25(1) & ANR.

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W.P.(C)/5592/2020HC DelhiDLHC01022762202024 August 2020Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE SANJEEV NARULA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, after hearing arguments, disposed of the writ petition with the consent of both parties. The Court directed the respondents to decide the petitioner's rectification applications, filed under Section 154 of the Income Tax Act, 1961, on July 28, 2020, August 6, 2020, and August 11, 2020, within a period of six weeks from the date of the order. The Court explicitly stated that all rights and contentions of the parties were left open, meaning no final decision was made on the merits of the refund or demand issues. The operative direction was solely to expedite the decision on the pending rectification applications.

What were the facts?

The petitioner, Texaco Overseas P. Ltd., filed a writ petition seeking the refund of Rs. 1,51,110/- and Rs. 1,84,730/- for Assessment Years 2014-15 and 2015-16, respectively, as determined under Section 143(1) of the Income Tax Act, 1961. They also sought interest under Section 244A of the Act. Additionally, the petitioner prayed for the deletion of a demand of Rs. 22,44,970/- for Assessment Year 2010-11, arising from orders passed under Sections 143(3)/254/154 of the Act. The petitioner contended that refunds determined under Section 143(1) should not be withheld against demands that have subsequently been reduced to nil. Despite filing rectification applications under Section 154 on July 28, 2020, August 6, 2020, and August 11, 2020, the refunds had not been granted.

What were the issues?

1. Whether the respondents can refuse to grant refunds determined under Section 143(1) of the Income Tax Act, 1961, when the demands against which these refunds might be set off have subsequently been reduced to nil? (Question of law and fact, turning on Section 143(1) and Section 244A). Assessee's Contention: The petitioner argued that refunds determined under Section 143(1) should be released and not withheld against demands that have been reduced to nil. They also highlighted that despite filing rectification applications, the refunds were not processed. Revenue's Contention: The judgment does not record any specific arguments from the revenue regarding the refund issue or the demand deletion. The revenue was represented and accepted notice.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 244A,Section 143(3),Section 254,Section 154

AI-generated summary — verify with the full judgment below

W.P. (C) 5592/2020

Page 1 of 2

$~42 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ W.P. (C) 5592/2020

TEXACO OVERSEAS P. LTD.

...... Petitioner Through: Mr. Mukesh Gupta, Advocate.

versus

ACIT, CIRCLE 25(1) & ANR.

...... Respondents Through: Mr. Abhishek Maratha, Senior Standing Counsel with Mr. Pratayash Gupta, Ms. Nupur Sharma and

Mr. Anshul Sharma, Advocates.

Date of Decision: 24th August, 2020

CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE SANJEEV NARULA

J U D G M E N T MANMOHAN, J: (Oral) CM APPL. 20206/2020 Allowed, subject to all just exceptions. W.P. (C) 5592/2020 1. The petition has been listed before this Bench by the Registry in view of the urgency expressed therein. The same has been heard by way of video conferencing. 2. Present writ petition has been filed seeking refund of Rs. 1,51,110/- and Rs.1,84,730/- determined under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘Act, 1961’) for the Assessment Years 2014-15 and

W.P. (C) 5592/2020

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2015-16 respectively along with interest under Section 244A of the Act, 1961. Petitioner also prays for deletion of demand of Rs.22,44,970/- for Assessment Year 2010-11 in pursuance to the orders dated 25th November, 2016 and 08th December, 2016 passed under Section 143(3)/254/154 of the Act, 1961. 3. Learned counsel for the petitioner states that the respondent cannot refuse refunds determined under Section 143(1) of the Act, 1961 against demands which have subsequently been reduced to ‘Nil’. 4. Learned counsel for the petitioner further states that despite rectification applications dated 28th July, 2020, 06th August, 2020 and 11th August, 2020 under Section 154 of Act, 1961, respondents have till date not granted the aforesaid refunds. 5. Issue notice. 6. Mr. Abhishek Maratha, learned counsel accepts notice on behalf of respondents. 7. After some arguments, with the consent of the parties, the present writ petition is disposed of with a direction to the respondents to decide the petitioner’s rectification applications dated 28th July, 2020, 06th August, 2020 and 11th August, 2020 under Section 154 of the Act, 1961 within six weeks in accordance with law. All rights and contentions of the parties are left open. 8. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.

MANMOHAN, J

SANJEEV NARULA, J AUGUST 24, 2020 js

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