MUFG BANK LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2) (1)AND ORS.

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W.P.(C)/14755/2022HC DelhiDLHC01039498202219 October 2022Author: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA5 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petitions. The Court directed the respondents to pass the appeal effect orders and make the payment of refunds pursuant to the ITAT orders dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021, and the order of the ITAT dated 13th September, 2019, and the order of the Calcutta High Court dated 07th August, 2019. These directions were to be complied with within six weeks in accordance with law. The Court explicitly stated that the rights and contentions of all parties were left open. The primary finding was that the revenue needed to comply with the prior appellate and judicial pronouncements by issuing the refunds.

What were the facts?

The petitioner, MUFG Bank Ltd., filed multiple writ petitions before the Delhi High Court seeking directions for the respondents (Assistant Commissioner of Income Tax and others) to give effect to various orders of the Income Tax Appellate Tribunal (ITAT) and the Calcutta High Court. These orders pertained to Assessment Years 2009-10, 1996-97, 2016-17, 2001-02, and 1991-92. The petitioner alleged that despite these favorable orders, the revenue authorities had failed to pass the necessary appeal effect orders and issue consequential refunds, amounting to significant sums, along with interest under Section 244A(1) and 244(1A) of the Income Tax Act, 1961. The petitioner had made several representations to the revenue without success.

What were the issues?

1. Whether the respondents have failed to pass appeal effect orders and issue consequential refunds to the petitioner, despite ITAT and High Court orders, thereby causing the petitioner's refunds to be blocked? 2. Whether the respondents' failure to issue refunds as per Section 153(5) of the Income Tax Act, 1961, and their action of withholding refunds is contrary to Article 265 and 300A of the Constitution of India? Assessee's Contentions: The petitioner argued that the respondents failed to pass orders giving effect to the ITAT and High Court orders without any reason, leading to blocked refunds. They also contended that repeated representations were ignored. The petitioner asserted that the revenue's failure to pass appeal effect orders and issue refunds was a gross failure in their legal duty and contrary to constitutional provisions. Revenue's Contentions: The revenue, through its senior standing counsel, stated that they were in the process of issuing refunds to the petitioner.

Which sections of the Income-tax Act were involved?

Section 244A(1),Section 244(1A),Section 153(5)

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Heard together (6 matters)

W.P.(C) No.14745/20
W.P.(C) 14745/2022
W.P.(C) 14748/2022
W.P.(C) 14749/2022
W.P.(C) 14752/2022
W.P.(C) 14755/2022

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

Page 1 of 5 $~47 to 51 * IN THE HIGH COURT OF DELHI AT NEW DELHI W.P.(C) 14745/2022 & C.M.No.45350/2022 versus W.P.(C) 14748/2022 & C.M.No.45352/2022

Page 2 of 5 W.P.(C) 14749/2022 & C.M.No.45353/2022 W.P.(C) 14752/2022

Page 3 of 5 W.P.(C) 14755/2022 & C.M.No.45377/2022 % Date of Decision: 19th October, 2022 CORAM: HON’BLE MR. JUSTICE MANMOHAN HON’BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J: 1. Present writ petitions have been filed seeking directions to the Respondents to pass orders giving effect to the orders of the Income Tax Appellate Tribunal (‘ITAT’) dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021 as well as the order of the ITAT dated 13th September, 2019 and the order of the Calcutta High Court dated 07th August, 2019 and issue consequential refund of Rs.58,32,30,038/,

Page 4 of 5 Rs.11,14,54,207/-, Rs.13,89,08,987/-, Rs.8,11,44,800/- and Rs.1,94,65,800/- for the Assessment Years 2009-10, 1996-97, 2016-17, 2001-02 and 1991-92 with interest under Section 244A(1) of the Income Tax Act, 1961 (‘the Act’) and additional interest under section 244(1A) of the Act. 2. Learned counsel for the Petitioner states that the Respondents have failed to pass orders giving effect to the orders of the ITAT and the High Court without giving any reason due to which the legitimate refunds available to the Petitioner are lying blocked. 3. Learned counsel for the Petitioner states that the Petitioner made several representations to the Respondent No.1 reminding him about passing the order giving effect to the aforementioned orders, but to no avail. 4. Learned counsel for the Petitioner states that the Respondents have grossly failed in their duty in law in not passing the appeal effect orders and issuing refund as per Section 153(5) of the Act and their action of withholding the refund is ex facie contrary to and in contempt of Article 265 and 300A of the Constitution of India. 5. Issue notice. Mr.Kunal Sharma, senior standing counsel accepts notice on behalf of the Revenue and Mr.Ravi Prakash, CGSC accepts notice on behalf of UOI. Mr.Kunal Sharma states that the Revenue is in the process of issuing refunds to the Petitioner. 6. Keeping in view the limited relief sought in the present writ petitions, the same are disposed of along with pending applications with directions to the Respondents to pass the appeal effect order and make payment of refunds pursuant to ITAT orders dated 21st May, 2020 and 06th December, 2018, the Assessment order dated 18th March, 2021 as well as the order of the ITAT dated 13th September, 2019 and the order of the Calcutta High

Page 5 of 5 Court dated 07th August, 2019 within six weeks in accordance with law. However, the rights and contentions of all the parties are left open. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J OCTOBER 19, 2022 KA

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