SUBEX LIMITED vs. DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1)

WP/29162/2024HC KarnatakaKAHC01060836202423 July 2025Bench: SURAJ GOVINDARAJ4 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court noted that the grievance of the petitioner was addressed by the submissions made by the respondent's counsel and the subsequent memo filed. The memo indicated that due to a mistake, credit for ₹24,32,549 was not initially given, and after re-computation, the total refundable amount was ₹31,43,917. The court was informed that the balance amount would be refunded to the petitioner within a period of 8 weeks from the date of the order. Therefore, the court found that the petitioner's prayer for refund had been substantially met. The petition was disposed of, reserving liberty to the petitioner to seek further rectification if available.

What were the facts?

The petitioner, Subex Limited, filed a writ petition before the High Court of Karnataka seeking a direction to the respondents to refund an amount of ₹24,32,549 determined as refundable for Assessment Year 2006-07, along with applicable interest. The order determining this refund was dated 11.05.2023. During the preliminary hearing on 09.07.2025, the respondents' counsel stated that refunds for prayers 2 and 3 had been processed and the amount refunded. For prayer 1, the respondent was asked to verify if the petitioner's application for refund had been considered and orders passed. Subsequently, on 10.07.2025, a memo was filed by the respondents indicating that due to a mistake, credit for ₹24,32,549 was not initially given. After re-computation, the total refundable amount was determined to be ₹31,43,917, and the balance amount was to be refunded within 8 weeks.

What were the issues?

1. Whether the petitioner is entitled to a direction for the refund of ₹24,32,549, along with applicable interest, for Assessment Year 2006-07, as determined by the order dated 11.05.2023? (Question of fact and law) Assessee's Contention: The petitioner sought a direction for the immediate refund of the determined amount, along with applicable interest, as per the order dated 11.05.2023. Revenue's Contention: The revenue, through its counsel and subsequent memo, acknowledged a mistake in not crediting the full amount initially. They submitted that the entire refundable amount, after re-computation, would be refunded within 8 weeks.

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:28171 WP No. 29162 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 23RD DAY OF JULY, 2025

BEFORE

THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

WRIT PETITION NO.29162 OF 2024 (T-IT)

BETWEEN:

SUBEX LIMITED BLOCK-9, 4TH FLOOR WING B, PRITECH PARK SEZ OUTER RING ROAD BELLANDUR, VARTHUR HOBLI BENGALURU - 560 103 A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 REPRESENTED HEREIN BY ITS CHIEF FINANCIAL OFFICER MR. SUMIT KUMAR. …PETITIONER

(BY SMT. TANMAYEE RAJKUMAR, ADVOCATE)

AND:

DEPUTY/ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-6(1)(1) ROOM NO.237, 2ND FLOOR BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095.

ASSISTANT DIRECTOR OF INCOME TAX CENTRALIZED PROCESSING CENTRE INCOME-TAX DEPARTMENT

Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

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HC-KAR NC: 2025:KHC:28171 WP No. 29162 of 2024

BENGALURU KARNATAKA - 560 500.

DIRECTOR GENERAL OF INCOME-TAX (SYSTEMS) ARA CENTRE, GROUND FLOOR, E-2 JHANDEWALAN EXTENSION NEW DELHI - 110 055. 4. THE PRINCIPAL COMMISSIONER OF INCOME-TAX - I, BMTC BUILDING 6TH BLOCK, 80 FEET ROAD KORAMANGALA BENGALURU - 560 095. …RESPONDENTS

(BY SRI DILIP M., ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS TO FORTHWITH REFUND AN AMOUNT OF RS.24,32,549 DETERMINED AS BEING REFUNDABLE BY THE ORDER DATED 11.05.2023 BEARING DIN NO.ITBA/GEA/M/260A/2023-24/1052842434(1) FOR THE ASSESSMENT YEAR 2006-07 (ANNEXURE - A), ALONG WITH APPLICABLE INTEREST AND ETC.,

THIS WRIT PETITION IS COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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HC-KAR NC: 2025:KHC:28171 WP No. 29162 of 2024

CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

When the matter was taken up for hearing on 09.07.2025, learned counsel for the respondents had submitted that insofar as prayer Nos.2 and 3, the refund order has been passed and the amount was refunded. Insofar as the prayer No.1, the respondent was called upon to verify if the petitioner's application has been considered and necessary orders passed.

Today, a memo has been filed enclosing an order dated 10.07.2025, wherein it is stated by mistake credit for an amount of ₹24,32,549/- was not given and as such, after computing the same, the total refundable amount is ₹31,43,917/-, the balance amount shall be refunded to the petitioner within a period of 8 weeks from today.

In that view of the matter, the grievance of the petitioner is addressed by submission made by the counsel for the respondent.

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HC-KAR NC: 2025:KHC:28171 WP No. 29162 of 2024

The petition stands disposed of reserving liberty to the petitioner to seek for such other and further rectification as may be available to the petitioner.

SD/- (SURAJ GOVINDARAJ) JUDGE

VM List No.: 1 Sl No.: 48

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