AFILIAS INDIA PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE - 1(1), DELHI & ORS.

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W.P.(C)/16080/2023HC DelhiDLHC01052410202314 December 2023Bench: HON'BLE MS. JUSTICE MINI PUSHKARNA,HON'BLE THE ACTING CHIEF JUSTICE2 pages
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What did the High Court hold?

The Delhi High Court disposed of the application by directing the refund of the undisputed amount to the petitioner within a period of two weeks from the date of the order (August 13, 2025). The Court reasoned that the petitioner had claimed an admitted refund amount of Rs. 77,18,329, and the revenue had not provided any contrary instructions or arguments to dispute this amount. The operative direction was to release this undisputed refund. The Court also stated that if the amount was not refunded within two weeks, the petitioner would have liberty to revive the application, and the Court would be constrained to call for the presence of the Assessing Officer. No specific issue was left undecided, as the Court granted immediate relief on the undisputed amount.

What were the facts?

The petitioner, Afilias India Private Limited, filed a writ petition before the Delhi High Court seeking a refund of taxes along with statutory interest. The High Court, on December 14, 2023, disposed of the writ petitions with a direction to the respondent (Deputy Commissioner of Income Tax) to decide the petitioner's rectification applications, dated June 30, 2021, and January 29, 2020, by way of a speaking order within eight weeks. Consequential refunds, if any, were to be released within a further eight weeks. The petitioner then filed an application seeking a refund of Rs. 1,20,55,122. The petitioner's counsel pointed out that an order dated December 4, 2023, under Section 154 read with Section 143(1) of the Income Tax Act, 1961, had directed a refund of Rs. 77,18,239, despite TDS credit of Rs. 1,64,68,769. The petitioner had filed a rectification application against this order.

What were the issues?

1. Whether the petitioner is entitled to the refund of the undisputed amount of Rs. 77,18,329, as claimed by the petitioner, in light of the order passed under Section 154 read with Section 143(1) of the Income Tax Act, 1961? Assessee's Contention: The petitioner argued that the admitted amount of refund, Rs. 77,18,329, needs to be paid to them. They highlighted that while TDS credit of Rs. 1,64,68,769 was granted, the refund directed was only Rs. 77,18,239, and they had filed a rectification application against the order dated December 4, 2023. Revenue's Contention: The revenue's counsel sought time to take instructions and later stated that despite best efforts, instructions were not forthcoming.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(1)

AI-generated summary — verify with the full judgment below

$~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 16080/2023 AFILIAS INDIA PRIVATE LIMITED ....Petitioner Through: Dr. Shashwat Bajpai and Ms Ishita Nayak, Advocates. versus DEPUTY COMMISSIONER OF INCOME TAX CIRCLE - 1(1), DELHI & ORS. .....Respondents Through: Mr. Sanjay Kumar, SSC, Ms Monica Benjamin, JSC and Ms Easha, JSC. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE RENU BHATNAGAR O R D E R % 13.08.2025 CM APPL. 30442/2025 1. This is an application filed with the following prayers: “(a) Direct the Respondent to issue the refund along with applicable statutory interest amounting to Rs. 1,20,55,122, in pursuance of this Hon’ble Court’s Order dt. 14.12.2024; and (b) Pass any other further orders as deemed fit by this Hon’ble Court in the interests of justice.” 2. The petition was disposed of on 14.12.2023 in the following manner : “Keeping in view the limited relief sought in the present matters, the writ petitions along with the applications are disposed of with a direction to the respondent no.1 to decide the petitioner’s rectification applications dated 30th June, 2021 and 29th January, 2020 by way of a speaking order in accordance with law within eight weeks and consequential 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 22/08/2025 at 12:33:59

refunds along with up-to-date interests, if any, be released to the petitioner in further eight weeks’ time.” 3. Learned counsel for the petitioner has drawn our attention to page 13 of the above mentioned application to contend the Assessing Officer has passed an order dated 04.12.2023, (received on 15.12.2023) under Section 154 read with Section 143(1) of the Income Tax Act 1961 thereby directing the refund of Rs.77,18.239/-. His submission is that though the credit of TDS to the tune of Rs.1,64,68,769/- has been granted still the amount directed to be refunded is Rs.77,18,239/-. According to him, the petitioner/assessee has filed an application for rectification of the order dated 04.12.2023. He says, the admitted amount of refund being Rs.77,18,329/- the same needs to be paid to the petitioner. 4. On the last date of hearing, Mr. Sanjay Kumar had sought time to take instructions. He states that despite his best efforts, the instructions are not forthcoming. 5. We accordingly dispose of the application directing the refund of the undisputed amount to the petitioner within a period of two weeks from today. If the amount is not refunded within two weeks, we grant liberty to the petitioner/applicant to revive the present application and we shall be constrained to call the presence of the Assessing Officer in the court. V. KAMESWAR RAO, J RENU BHATNAGAR, J AUGUST 13, 2025/dd 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 22/08/2025 at 12:33:59

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