M/S NORTEL NETWORKS SINGAPORE PTE LIMITED IN LIQUIDATION vs. DEPUTY COMMISSIONER OF INCOME TAX

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W.P.(C)/7481/2024HC DelhiDLHC01031104202422 May 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 disposed of the writ petition on the terms agreed upon by the parties. The Court recorded the statement made by the respondent's counsel that the rectification application, pending since April 4, 2022, would be duly examined and disposed of in accordance with law within six weeks from the date of the order. Additionally, the Court provided that in case rectification is granted, the respondent shall consider the provisions of Section 244A(1A) and Section 244A(1) of the Income Tax Act, 1961, and the asserted claim of interest. All rights and contentions of the respective parties were kept open. No specific finding was made on the merits of the rectification application or the interest claim, as the matter was disposed of based on the respondent's undertaking.

What were the facts?

The petitioner, M/s Nortel Networks Singapore Pte Limited in Liquidation, filed a writ petition before the Delhi High Court seeking a mandamus to direct the Deputy Commissioner of Income Tax (Respondent) to dispose of a rectification application dated April 4, 2022, within four weeks. The petitioner also sought a direction to issue interest under Section 244A(1) and additional interest under Section 244A(1A) of the Income Tax Act, 1961, and release consequential refunds within four weeks. The rectification petition had been pending since April 4, 2022. The Respondent's counsel stated that the application would be examined and disposed of within six weeks from the date of the order.

What were the issues?

1. Whether a writ of mandamus should be issued directing the Respondent to dispose of the rectification application dated April 4, 2022, within four weeks? The petitioner argued for the issuance of the writ due to the prolonged pendency of the application. The respondent did not record any specific argument against the issuance of the writ but agreed to dispose of the application within six weeks. 2. Whether a writ of mandamus should be issued directing the Respondent to issue interest under Section 244A(1) and additional interest under Section 244A(1A) of the Act and release consequential refunds? The petitioner asserted a claim for interest. The respondent's counsel did not record specific arguments against this claim but agreed to consider the provisions of Section 244A(1) and 244A(1A) if rectification is granted.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

$~148 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 7481/2024

M/S NORTEL NETWORKS SINGAPORE PTE LIMITED IN LIQUIDATION

..... Petitioner Through: Mr. Kamal Sawhney, Mr. Nikhil Agarwal, Mr. Puru Medhira and Mr. Nishank Vashistha, Advocates.

versus

DEPUTY COMMISSIONER OF INCOME TAX .. Respondent Through: Mr. Ruchir Bhatia and Mr. Anant Mann, Advocates.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE AMIT BANSAL

O R D E R %

22.05.2024

1.

This instant writ petition seeks the following reliefs:- “(i) Issue a writ of mandamus and/or any other writ, order or direction in the nature of mandamus directing the Respondent to dispose the rectification application dated 04.04.2022 within a period of four weeks.

(ii) Issue a writ of mandamus and/or any other writ, order or direction in the nature of mandamus directing the Respondent to issue interest (computed till the date of remittance) under Section 244A(1) and additional interest under Section 244A(1A) of the Act, and release consequential refunds within a period of four weeks.”

2.

Undisputedly, the rectification petition has been pending right from 04 April 2022. 3. In view of the aforesaid, Mr. Bhatia, learned counsel appearing for the respondent states that the said application shall be duly examined and disposed of in accordance with law within a period of 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 27/05/2024 at 12:59:27

six weeks from today. The statement so made is recorded and accepted. 4. We, additionally, provide that in case rectification is granted, the respondent shall also bear in consideration the provisions of Section 244A(1A) and Section 244A(1) of the Income Tax Act, 1961 [„Act’] and the asserted claim of interest as raised. 5. The petition shall stand disposed of on the above terms. 6. All rights and contentions of respective parties are kept open.

YASHWANT VARMA, J

AMIT BANSAL, J MAY 22, 2024/ RW

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 27/05/2024 at 12:59:27

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