GUARDIAN INDIA SOLUTIONS PVT. LTD. vs. ITO WARD 10(4), DELHI & ANR.

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W.P.(C)/13661/2022HC DelhiDLHC01036039202221 September 2022Author: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA3 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petition with a direction to Respondent No. 1 (Income Tax Officer) to pass the appeal effect order of the ITAT's order dated March 9, 2022, in Appeal No. 1603/Del/2021 for the assessment year 2018-19. The Court further directed that consequential effect be given to the order by refunding the excess tax paid by the petitioner in accordance with law within four weeks. The matter was listed for compliance on December 15, 2022. The Court's decision is based on the principle that tax authorities must comply with appellate orders promptly to ensure the assessee receives the benefit of the relief granted.

What were the facts?

The petitioner, Guardian India Solutions Pvt. Ltd., filed a writ petition before the Delhi High Court seeking a direction to the respondents (Income Tax Officer and another) to pass an appeal effect order concerning the assessment year 2018-19. The petitioner's income tax return was processed, and an addition/disallowance of Rs. 18,06,399 was made on account of late deposit of ESIC/PF contributions. The petitioner's appeal before the CIT(A) was dismissed. Subsequently, the ITAT allowed the petitioner's appeal, deleting the additions. Despite the ITAT's order dated March 9, 2022, and a subsequent communication from the petitioner on April 19, 2022, no appeal effect order had been passed by the respondent. The revenue accepted notice and agreed to pass the order within four weeks.

What were the issues?

1. Whether the Income Tax Officer is obligated to pass an appeal effect order in compliance with the ITAT's decision, and consequently refund any excess tax paid by the assessee? (Question of law and fact, concerning the procedural obligations of tax authorities post-appellate decisions). Assessee's Contention: The assessee argued that the ITAT had allowed its appeal and deleted the additions made by the revenue. Following this, the assessee had requested an appeal effect order to obtain a refund of the excess tax paid, but no action had been taken by the respondent. The petitioner sought a direction from the High Court to compel the respondent to pass the appeal effect order. Revenue's Contention: The revenue, through its counsel, accepted notice and stated that the appeal effect order would be passed within four weeks.

AI-generated summary — verify with the full judgment below

$~S-53 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13661/2022 & CM APPL.41653/2022 GUARDIAN INDIA SOLUTIONS PVT. LTD. ..... Petitioner Through: Mr.P.Roychaudhuri, Advocate. versus ITO WARD 10(4), DELHI & ANR. ..... Respondents Through: Mr.A.Renganath, Advocate for Mr.Ajit Sharma, Sr.Standing Counsel. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 21.09.2022 Present writ petition has been filed seeking direction to the respondents to pass appeal effect order of the Order dated 09th March, 2022 passed by the Income Tax Appellate Tribunal (‘ITAT’), New Delhi in Appeal No.1603/Del/2021 for the assessment year 2018-19 and to give consequential effect to the order by refunding the excess tax paid by the Petitioner. Learned Counsel for the Petitioner states that the income tax return of the Petitioner-Company was processed by CPC, Bangalore and an intimation dated 04th March, 2020 was issued by respondent No.2 making additions/disallowances of Rs.18,06,399/- on account of deposit of ESIC/PF contribution of the employees after due date but before the due date of filing of ITR in the case of the Petitioner.

Learned counsel for the Petitioner states that the Petitioner being aggrieved with the intimation dated 04th March, 2020 passed by the Respondent No.2, filed an appeal before the Commissioner of Income Tax (Appeals) [‘CIT(A)’] on 19th December, 2019. However, he states that the Appeal of the Petitioner was dismissed by the CIT(A) vide its Order dated 31st August, 2021. Learned counsel for the Petitioner states that the Petitioner challenged the Order dated 31st August, 2021 passed by the CIT(A) before the ITAT. He states that the ITAT, New Delhi allowed the appeal of the Petitioner vide order dated 9th March, 2022 and deleted the additions/disallowances made by the Respondent No.2. Learned Counsel the Petitioner states that the Petitioner also sent a copy of the Order dated 09th March, 2022 passed by the ITAT vide communication dated 19th April, 2022 requesting to pass an appeal effect order so that the Petitioner can get refund of the excess tax paid. He states that till date, the Respondent No.1 has not taken any action on the same. Issue notice. Mr.A.Renganath, learned counsel for the respondents- revenue, accepts notice. He states that appeal effect order shall be passed within four weeks. Keeping in view the aforesaid, the present writ petition is disposed of with a direction to the respondent No.1 to pass the appeal effect order of the order dated 9th March, 2022 passed by the ITAT, New Delhi in Appeal No.1603/Del/2021 for the assessment year 2018-19 and give consequential effect to the order by refunding excess tax paid by the petitioner in accordance with law within four weeks.

List the matter for compliance on 15th December, 2022. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J SEPTEMBER 21, 2022 TS

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