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

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W.P.(C)/14749/2022HC DelhiDLHC01039481202219 October 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA5 pages
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What did the High Court hold?

The Delhi High Court disposed of the writ petitions, directing 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 the law. The Court explicitly stated that the rights and contentions of all parties were left open. The primary reasoning was to ensure compliance with the earlier judicial pronouncements and to facilitate the release of refunds due to the petitioner, acknowledging the revenue's statement that refunds were in process.

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 passed by 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 for each assessment year, along with interest under Section 244A(1) and additional interest under Section 244(1A) of the Income Tax Act, 1961. The petitioner claimed these delays were causing their legitimate refunds to remain blocked.

What were the issues?

1. Whether the respondents have failed to pass orders giving effect to the orders of the ITAT and the Calcutta High Court, thereby causing the petitioner's refunds to be blocked, and if so, what directions are necessary? (Mixed question of law and fact, concerning the implementation of judicial pronouncements and statutory obligations). Assessee's Contentions: - The respondents have failed to pass orders giving effect to the ITAT and High Court orders without any valid reason, leading to the petitioner's refunds being unlawfully withheld. - Multiple representations made by the petitioner to the respondent have been ignored. - The respondents' failure to pass appeal effect orders and issue refunds as per Section 153(5) of the Act is contrary to Article 265 and 300A of the Constitution of India. Revenue's Contentions: - The Revenue stated that they are 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.

Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter 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 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. + W.P.(C) 14748/2022 & C.M.No.45352/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified

Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter Page 2 of 5 + W.P.(C) 14749/2022 & C.M.No.45353/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. + W.P.(C) 14752/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified

Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter Page 3 of 5 + W.P.(C) 14755/2022 & C.M.No.45377/2022 MUFG BANK LTD ..... Petitioner Through: Mr.Nikhil Ranjan with Mr.Kamal Arya and Mr.Hiten Chande Advocates. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2 (2)(1), INTERNATIONAL TAXATION AND ORS. ..... Respondents Through: Mr.Kunal Sharma, Sr.Standing Counsel for the Revenue. Mr.Ravi Prakash, CGSC with Mr.Farhmaan Ali, Ms.Shruti Shiv Kumar and Mr.Manas Tripathi, Advocates for UOI. % 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/, Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified

Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter 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 Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified

Neutral Citation Number: 2022/DHC/004420 W.P.(C) No.14745/202 & connected matter 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 Digitally Signed By:JASWANT SINGH RAWAT Signing Date:20.10.2022 19:04:53 Signature Not Verified

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