CONNER INSTITUTE OF HEALTH CARE AND RESEARCH CENTER PVT. LTD. vs. INCOME TAX OFFICER WARD 6(1)

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W.P.(C)/891/2021HC DelhiDLHC01007058202127 January 2021Bench: HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW,HON'BLE MR. JUSTICE SANJEEV NARULA3 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court directed the Respondent to look into the matter and process the Petitioner's request for interest on the refund amount under Section 244A within a period of four weeks from the date of the order. The Court further stipulated that if, within this period, the Revenue concluded that interest was not due or payable, it must communicate this decision to the Petitioner through a speaking order. The Petitioner would then be at liberty to pursue further remedies against such an order. The Court did not decide on the merits of whether interest was due, but rather directed the Respondent to consider the claim and provide a reasoned decision. The writ petition was disposed of with these directions.

What were the facts?

The Petitioner, Conner Institute of Health Care and Research Center Pvt. Ltd., previously approached the Delhi High Court in W.P.(C.) 430/2020, challenging an order under Section 241A of the Income Tax Act, 1961, which withheld a refund of Rs. 1,57,83,688/- processed under Section 143(1). The Court allowed the previous petition, setting aside the Section 241A order and directing the Respondent (Income Tax Officer Ward 6(1)) to reconsider withholding the refund. Subsequently, the Petitioner received a refund of Rs. 1,57,83,690/- on August 29, 2020. However, the Petitioner filed the current writ petition, W.P.(C) 891/2021, alleging that interest for the period from December 1, 2019, to August 31, 2020, under Section 244A of the Act, had not been granted.

What were the issues?

1. Whether the Petitioner is entitled to interest under Section 244A of the Income Tax Act, 1961, for the period from December 1, 2019, to August 31, 2020, on the refund amount. Assessee's Contention: The Petitioner argued that interest under Section 244A has not been granted for the specified period and that there is no statutory remedy available under the Act to avail this relief. Revenue's Contention: The Senior Standing Counsel for the Revenue stated that instructions would need to be taken regarding the reasons for the non-grant of interest on the refund amount.

Which sections of the Income-tax Act were involved?

Section 241A,Section 143(1),Section 244A,Section 143(3)

AI-generated summary — verify with the full judgment below

W.P.(C) 891/2021 Page 1 of 3

$~15 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 891/2021 CONNER INSTITUTE OF HEALTH CARE AND RESEARCH CENTER PVT. LTD.

..... Petitioner

Through: Mr. Mukesh Chand, Advocate.

versus

INCOME TAX OFFICER WARD 6(1)

..... Respondent Through: Mr. Ajit Sharma, Senior Standing Counsel.

CORAM:

HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW

HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R %

27.01.2021

[VIA VIDEO CONFERENCING]

1.

This is the second round of litigation at the instance of the Petitioner. The Petitioner had earlier approached this court in W.P.(C.) 430/2020, aggrieved with the order issued under Section 241A of the Income Tax Act, 1961 (‘the Act’), withholding the refund of Rs. 1,57,83,688/-, processed under Section 143(1) of the Act. The said was allowed vide order dated 27th July, 2020 and the order under Section 241A of the Act was set aside with a direction to the Respondents to re-consider the matter of withholding refund under Section 241A of the Act. The operative portion of the said order reads as under:

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 27/06/2026 at 00:57:28

W.P.(C) 891/2021 Page 2 of 3

“Accordingly, we set aside the impugned communication/ order dated 10.01.2020. We, therefore, grant three weeks' time to the respondents to re-consider the aspect whether the amount found due to be refunded, or any part thereof, is liable to be withheld under Section 241A in line with the decisions of this court as noted above. The entire consideration, with the approval of the Principal Commissioner of Income Tax to the withholding of the refund amount, or any part thereof, should be completed within three weeks from today, failing which, we direct that without awaiting any further orders, the respondents shall transmit the amount of refund determined under section 143 (1) of the Act alongwith interest to the petitioner. In the eventuality of the respondents recording any reasons for withholding a part thereof, or the entire amount due for refund to the petitioner under Section 143(1), the reasons thereof as approved by the Principal Commissioner of Income Tax shall be provided to the petitioner forthwith. It shall be open to the petitioner to take remedial steps in respect of any orders for withholding of refund that may be passed. Needless to state that the reasons recorded for withholding of refund under section 241A would only amount to a tentative view and would not come in the way of the Assessing Officer to frame the assessment under section 143(3) of the Act.

9.

The writ petition is accordingly allowed in the above terms. Copy of this judgment be forwarded to the learned counsel for parties through email”

2.

Pursuant to the aforesaid order, the Petitioner has been granted a refund of Rs. 1,57,83,690/- on 29th August, 2020.

3.

The Petitioner is however still aggrieved and has again approached this Court contending that under Section 244A of the Act, interest for the period from 1st December, 2019 to 31st August, 2020 has still not been granted. It is argued that there is no statutory remedy under the Act for 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 27/06/2026 at 00:57:28

W.P.(C) 891/2021 Page 3 of 3

availing this relief. Mr. Ajit Sharma, learned Senior Standing Counsel for the Revenue submits that he will have to take instructions as to the reasons for the non-grant of the interest on the aforesaid amount.

4.

We would not like to keep the present petition pending and accordingly we direct the Respondent to look into the matter and process the request for interest on the refund amount under Section 244A within a period of four weeks from today. In case within the aforesaid period the Revenue comes to a conclusion that interest is not due or payable to the Petitioner, the same would be communicated by way of a speaking order to the Petitioner. Petitioner shall thereafter be at liberty to avail its remedy against such an order.

5.

With the aforesaid directions, the present writ petition stands disposed of.

RAJIV SAHAI ENDLAW, J

SANJEEV NARULA, J

JANUARY 27, 2021 nd 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 27/06/2026 at 00:57:28

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