M/S ESS DISTRIBUTION (MAURITIUS) SNC ET COMPAGNIE vs. DEPUTY COMMISSIONER OF INCOME TAX & ORS.

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W.P.(C)/11520/2024HC DelhiDLHC01052632202414 November 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA4 pages
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What did the High Court hold?

The Delhi High Court acknowledged the petitioner's grievance regarding the delay in processing rectification applications and granting refunds. The Court accepted the assurance given by the Revenue that all rectification applications, except for the one pertaining to Assessment Year (AY) 2023-24, would be disposed of within a period of three months from the date of the order. The Revenue also assured that the petitioner's submitted calculations for refunds would be considered, and an opportunity would be given to the petitioner to justify them if the Revenue's computations differed. For the AY 2023-24 application, the Court directed the petitioner to make an online application to CPC, Bangalore, which would also be processed within the same three-month timeframe. The writ petitions were disposed of with these directions, and the matter was listed for compliance on March 5, 2025.

What were the facts?

The petitioners, M/s ESS Distribution (Mauritius) SNC et Compagnie and M/s ESS Advertising (Mauritius) SNC et Compagnie, filed writ petitions before the Delhi High Court. Their grievance was that the respondent, Deputy Commissioner of Income Tax, had failed to dispose of their rectification applications for various assessment years and to grant refunds along with interest under Section 244A of the Income Tax Act, 1961. The petitioners contended that they were entitled to these refunds, especially after succeeding in appeals, but the necessary orders were not being issued. While some refunds had been processed, the petitioners claimed the calculations were incorrect. The revenue assured the court that all applications, except for AY 2023-24, would be processed within three months, considering the petitioner's calculations and providing an opportunity for justification.

What were the issues?

1. Whether the respondent authorities have failed to dispose of the rectification applications and grant due refunds with interest to the petitioner for various assessment years, thereby causing prejudice to the assessee? 2. Whether the calculations of refunds processed by the revenue authorities are erroneous, and if so, what is the recourse for the petitioner? Assessee's Contentions: - The petitioner argued that the respondent authorities have unjustifiably delayed the disposal of rectification applications and the disbursement of refunds, despite the petitioner being entitled to them. - They further contended that the refunds processed so far contain calculation errors, and their detailed submissions on correct calculations have not been considered. Revenue's Contentions: - The revenue, through its counsel, assured the court that all rectification applications, except for AY 2023-24, would be disposed of within three months. - The revenue also committed to considering the petitioner's submitted calculations and providing an opportunity for the petitioner to justify their computations before taking an informed decision.

Which sections of the Income-tax Act were involved?

Section 244A

AI-generated summary — verify with the full judgment below

Heard together (3 matters)

W.P.(C) 11520/2024
W.P.(C) 11528/2024
W.P.(C) 11530/2024

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

$~9 to 13 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 11520/2024

M/S ESS DISTRIBUTION (MAURITIUS) SNC ET

COMPAGNIE

.....Petitioner

Through: Mr. Porus Kaka, Sr. Advocate with

Mr. Divesh Chawla, Mr. Ashok

Mathur, Mr. Saurabh Jain and Ms.

Sanon Sharma, Advocates

versus

DEPUTY COMMISSIONER OF INCOME TAX

& ORS.

.....Respondents

Through: Mr. Puneet Rai, SSC with Mr.

Ashvini Kumar, Mr. Rishabh Nangia,

JSCs with Mr. Nikhil Jain, Advocate (10) + W.P.(C) 11528/2024

M/S ESS ADVERTISING (MAURITIUS) S.N.C ET COMPAGNIE

(PREVIOUSLY KNOWN AS ESPN STAR SPORTS MAURITIUS

S.N.C. ET COMPAGNIE)

.....Petitioner

Through: Mr. Porus Kaka, Sr. Advocate with

Mr. Divesh Chawla, Mr. Ashok

Mathur, Mr. Saurabh Jain and Ms.

Sanon Sharma, Advocates

versus

DEPUTY COMMISSIONER OF INCOME TAX

& ORS.

.....Respondents

Through: Mr. Puneet Rai, SSC with Mr.

Ashvini Kumar, Mr. Rishabh Nangia,

JSCs with Mr. Nikhil Jain, Advocate (11) + W.P.(C) 11530/2024

M/S ESS ADVERTISING (MAURITIUS) S.N.C ET COMPAGNIE

(PREVIOUSLY KNOWN AS ESPN STAR SPORTS MAURITIUS 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 25/11/2024 at 14:34:47

S.N.C. ET COMPAGNIE)

.....Petitioner

Through: Mr. Porus Kaka, Sr. Advocate with

Mr. Divesh Chawla, Mr. Ashok

Mathur, Mr. Saurabh Jain and Ms.

Sanon Sharma, Advocates

versus

DEPUTY COMMISSIONER OF INCOME TAX

& ORS.

.....Respondents

Through: Mr. Puneet Rai, SSC with Mr.

Ashvini Kumar, Mr. Rishabh Nangia,

JSCs with Mr. Nikhil Jain, Advocate (12) + W.P.(C) 11531/2024

M/S ESS DISTRIBUTION (MAURITIUS) SNC ET

COMPAGNIE

.....Petitioner

Through: Mr. Porus Kaka, Sr. Advocate with

Mr. Divesh Chawla, Mr. Ashok

Mathur, Mr. Saurabh Jain and Ms.

Sanon Sharma, Advocates

versus

DEPUTY COMMISSIONER OF INCOME TAX

& ORS.

.....Respondents

Through: Mr. Puneet Rai, SSC with Mr.

Ashvini Kumar, Mr. Rishabh Nangia,

JSCs with Mr. Nikhil Jain, Advocate (13) + W.P.(C) 11536/2024

M/ S ESS ADVERTISING (MAURITIUS) S.N .C ET COMPAGNIE

(PREVIOUSLY KNOWN AS ESPN STAR SPORTS MAURITIUS

S.N.C. ET COMPAGNIE)

.....Petitioner

Through: Mr. Porus Kaka, Sr. Advocate with

Mr. Divesh Chawla, Mr. Ashok

Mathur, Mr. Saurabh Jain and Ms.

Sanon Sharma, Advocates 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 25/11/2024 at 14:34:47

versus

DEPUTY COMMISSIONER OF INCOME TAX

& ORS.

.....Respondents

Through: Mr. Puneet Rai, SSC with Mr.

Ashvini Kumar, Mr. Rishabh Nangia,

JSCs with Mr. Nikhil Jain, Advocate

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

HON'BLE MS. JUSTICE SWARANA KANTA SHARMA

O R D E R %

14.11.2024

1.

The petitioner seeks similar reliefs in this batch of petitions. It seeks that direction be issued to the respondents to dispose of its rectification applications in respect to various assessment years and to grant refunds due along with interest under Section 244A of the Income Tax Act, 1961 (hereafter the Act). The grievance of the petitioner is justified. The petitioner has been repeatedly moving applications for the rectification of orders and seeking refunds, which apparently the petitioner is entitled to. However, the necessary orders, including to give effect to the appellate order in appeals where the assessee has succeeded, have not been issued. 2. On the previous hearing held on 25.10.2024, this Court was informed that after the last hearing, some of the applications filed by the petitioner were processed and refund had been granted. However, Mr. Kaka, learned senior counsel appearing for the petitioner submits that there are mistakes in the calculation of the amounts of refund as processed refunds. He submits that the petitioner had given detailed calculations to the concerned officer for calculating the refund and passing appropriate orders but the same have not been considered. 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 25/11/2024 at 14:34:47

3.

Mr. Puneet Rai, learned senior standing counsel appearing for the Revenue assures this Court that within a period of three months from the date, all applications – except one application pertaining to assessment year (AY) 2023-24 which is the subject matter of W.P.(C) 11520/2024 – preferred by the petitioner for rectifications and refund, will be disposed of and the refunds due will be duly processed and disbursed in accordance with law. He also assures this Court that the concerned officer will take into account the calculations submitted by the petitioner and if the concerned officer is not agreeable to the said computations, he would give an opportunity to the representative of the petitioner to justify the calculations and thereafter take an informed decision. 4. The respondents are bound down to the aforesaid statement made on their behalf. 5. Insofar as the petitioner’s application for rectification in respect of AY 2023-24 is concerned, the petitioner shall make an application online to CPC, Bangalore. It is directed that if the application is made within a period of two weeks from the date, it will also be duly processed in accordance with law within the aforementioned period of three months. 6. The present writ petitions are disposed of with the aforesaid directions. 7. List for compliance on 05.03.2025. VIBHU BAKHRU, J

SWARANA KANTA SHARMA, J NOVEMBER 14, 2024 zp

Click here to check corrigendum, if any 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 25/11/2024 at 14:34:47

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