MOL CORPORATION vs. ASSISTANT COMMISSIONER OF INCOME TAX & ORS.

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W.P.(C)/1064/2024HC DelhiDLHC01002159202424 January 2024Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court disposed of the writ petition on the terms agreed upon by the parties. The court recorded and accepted the submission made by the revenue's counsel that the jurisdictional Assessing Officer would examine the pending refund claim and dispose of it within a period of six weeks from the date of the order. Furthermore, the court directed that while releasing the refund, the AO shall simultaneously ensure that the statutorily payable interest is also released. The court did not delve into the merits of the ITAT order or the quantum of the refund itself, focusing solely on the procedural aspect of its release. The ratio decidendi is that administrative authorities must adhere to court-directed timelines for processing refunds arising from appellate orders and must also ensure the simultaneous release of statutory interest.

What were the facts?

The petitioner, MOL Corporation, filed a writ petition before the Delhi High Court challenging the non-release of a refund due to them. This refund was a consequence of an order passed by the Income Tax Appellate Tribunal (ITAT) on July 5, 2022. The petitioner contended that despite the ITAT's order, the refund had not been disbursed to them. The respondents, represented by learned counsel, submitted that the jurisdictional Assessing Officer (AO) would examine the pending refund claim and dispose of it within six weeks. The court recorded this submission and accepted it.

What were the issues?

1. Whether the petitioner is entitled to the release of the refund due pursuant to the ITAT order dated July 5, 2022, and if so, whether the delay in its release is justified. Assessee's Contention: The assessee argued that a refund was due based on the ITAT's order and that its non-release constituted a grievance. The assessee sought the expeditious release of this refund. Revenue's Contention: The revenue, through its counsel, submitted that the jurisdictional Assessing Officer would examine the pending refund claim and dispose of it within a stipulated period of six weeks. The revenue did not contest the existence of a potential refund but sought time for its processing.

AI-generated summary — verify with the full judgment below

$~51 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 1064/2024

MOL CORPORATION

..... Petitioner Through: Mr. Nageswar Rao, Mr. Parth and Mr. Aman Rewaria, Advs.

versus

ASSISTANT COMMISSIONER OF INCOME TAX & ORS. ..... Respondent

Through: Mr. Asheesh Jain, CGSC with Mr. Gaurav Kumar and Ms. Ria Khanna, Advs. for R-5.

Mr. Sanjay Kumar, Ms. Easha and Ms. Hemlata Rawat, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR

KAURAV

O R D E R %

24.01.2024 CM APPL. 4437/2024 (Ex.) 1. Allowed, subject to all just exceptions. 2. The application is disposed of. W.P.(C) 1064/2024 3. The solitary grievance which is raised in the instant writ petition is with respect to a refund which has become due pursuant to the order of the Income Tax Appellate Tribunal [“ITAT”] dated 05 July 2022 and has not been released till date. Mr. Kumar, learned counsel appearing for the respondents, on instructions, submits that the jurisdictional Assessing Officer shall duly examine the pending claim for refund and dispose of the same within a period of six weeks in accordance with law. The statement so made is recorded and accepted. 4. It is further provided that the AO while releasing the refund 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 13/06/2024 at 12:26:39

shall also ensure that the interest which is statutorily payable is also released simultaneously. 5. The writ petition shall stand disposed of on the aforesaid terms.

YASHWANT VARMA, J.

PURUSHAINDRA KUMAR KAURAV, J. JANUARY 24, 2024/neha 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 13/06/2024 at 12:26:39

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