VIRGIN ATLANTIC AIRWAYS LTD vs. PR DGIT (SYSTEMS) DELHI & ORS.

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W.P.(C)/2355/2022HC DelhiDLHC01006104202208 February 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE NAVIN CHAWLA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court accepted the assurance and undertaking given by the Revenue's counsel, Mr. Ruchir Bhatia. Mr. Bhatia assured the Court that the Petitioner's refund would be released within four weeks by the Central Processing Centre (CPC). The Court held the Respondents (Nos. 1 to 3) bound by this statement. Consequently, the writ petition along with pending applications was disposed of based on this undertaking. The Court did not explicitly decide on the entitlement to interest under Section 244A or the necessity of pre-validation, as the matter was resolved by the undertaking to release the refund within a specified timeframe. The primary outcome was the directive for the release of the determined refund.

What were the facts?

The Petitioner, Virgin Atlantic Airways Ltd., filed a writ petition before the Delhi High Court seeking directions for the release of a refund of Rs. 393,946/-. This refund was determined by an order under Section 143(3) of the Income Tax Act, 1961, dated November 28, 2019, for the Assessment Year 2017-2018. The Petitioner had filed its return of income on September 27, 2017, claiming a refund of Rs. 3,65,160/-. Despite the order determining the refund and subsequent multiple grievances filed by the Petitioner, the refund had not been received. The Petitioner also sought release of the refund without pre-validation of its bank account, validation of its bank account, and interest under Section 244A of the Act from November 28, 2019, until the date of release.

What were the issues?

1. Whether the Petitioner is entitled to a direction for the release of the refund of Rs. 393,946/- determined under Section 143(3) of the Income Tax Act, 1961, for Assessment Year 2017-2018? (Question of law and fact) 2. Whether the Petitioner is entitled to the release of the refund without pre-validation of its bank account and validation of its bank account? 3. Whether the Petitioner is entitled to interest under Section 244A of the Income Tax Act, 1961, from November 28, 2019, till the date of release of the refund? Assessee's Contentions: The Petitioner argued that a refund of Rs. 393,946/- was determined by an order under Section 143(3) of the Act dated November 28, 2019, for AY 2017-2018, but it had not been received despite filing multiple grievances. The Petitioner sought directions for the release of the refund, validation of its bank account, and interest under Section 244A. Revenue's Contentions: The Revenue, through its counsel, stated that the Petitioner's bank, Citi Bank, was 'not on board' the e-filing portal. It was further stated that the Petitioner's bank account was being validated by the National Payment Corporation of India (NPCI). The Revenue assured the Court that the refund would be released within four weeks by the CPC.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 244A

AI-generated summary — verify with the full judgment below

$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 2355/2022 & C.M.Nos.6783/2022, 6788/2022

VIRGIN ATLANTIC AIRWAYS LTD

..... Petitioner Through Mr.Nagesh kumar Behl with Mr. Mayank Pachauri, Advocates.

versus

PR DGIT (SYSTEMS) DELHI & ORS.

..... Respondents Through Mr.Ruchir Bhatia, Advocate for R-1 to 3.

Mr.Rahul Tyagi, Advocate for R-4.

CORAM:

HON'BLE MR. JUSTICE MANMOHAN

HON'BLE MR. JUSTICE NAVIN CHAWLA

O R D E R %

08.02.2022

The matter has been heard by way of video conferencing. By way of the present petition, Petitioner seeks a direction to Respondent Nos.1 to 3 to issue refund of Rs.393,946/- already determined vide order under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’); to release refund to the Petitioner without pre- validation of its bank account; to validate bank account of the Petitioner and give interest under Section 244A of the Act from 28th November, 2019 till the date of release of refund.

Learned Counsel for the Petitioner states that the Petitioner had filed its return of income for the Assessment Year 2017-2018 on 27th September, 2017 in which there was a refund of Rs.3,65,160/- by virtue of an order 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 17/06/2026 at 13:51:50

under Section 143(3) of the Act dated 28th November, 2019. He states that the Petitioner has not received the said refund till date despite filing multiple grievances.

Issue notice. Mr.Ruchir Bhatia, Advocate accepts notice on behalf of the Respondent Nos.1 to 3. He states that Petitioner’s bank i.e. Citi Bank is ‘not on board’ of the e-filing portal of the Respondents. He further states that the Petitioner’s bank account is now being validated from National Payment Corporation of India (NPCI). Mr.Bhatia assures and undertakes to this Court that the Petitioner’s refund shall be released within four weeks by the CPC.

The statement made by Mr.Bhatia is accepted by this Court and Respondent Nos.1 to 3 are held bound by the same.

In view thereof, the present writ petition along with pending applications stand disposed of.

MANMOHAN, J

NAVIN CHAWLA, J FEBRUARY 8, 2022 KA 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 17/06/2026 at 13:51:50

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