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June 4, 2022

Delhi HC orders the ACIT to credit tax challans and issue a rectification order.

by CA Shivam Jaiswal in Income Tax

Delhi HC orders the ACIT to credit tax challans and issue a rectification order.

Facts and Issue of the case

Present writ petitions have been filed seeking directions to the Respondents to grant credit of tax challans and to pass a rectification order for the assessment year 2016-17 and accordingly refund the excess amounts recovered from the petitioner along with interest.

Learned Counsel for the Petitioner states that the respondents have not granted credit of tax challan of Rs.13,34,88,012/- for the assessment year 2016-17 and Rs.18,94,91,010/- for the assessment year 2017-18 already paid. She states that while the rectification applications were pending adjudication, the Respondents adjusted the aforesaid dividend distribution tax demands against the refunds due for the assessment years 2018-19 and 2019-20 vide Challans dated 16th June and 25th August, 2020 respectively.

Learned counsel for the petitioner submits that the respondents cannot unjustly enrich themselves at the expense of the Petitioner and it is their duty to refund the excess tax collected. She relies on the decision of this Court in the case of Commissioner of Income Tax vs. Mitsubishi Corporation [2008] 306 ITR 260 (Delhi).

Observation  and Conclusion of the case

Issue notice. Mr.Sunil Agarwal, learned counsel for the respondents, accepts notice. Upon instructions, he prays for an adjournment on the ground that the Assessing Officer is seized of the controversy and is making efforts to resolve the issues mentioned in the present writ petition. However, this Court is of the view that no purpose would be served by keeping the matter pending.

Accordingly, the present writ petitions and pending applications are disposed of with directions to the respondent No.1 to grant credit of tax challans as well as to pass rectification order for the assessment year 2016- 17 and refund the excess amounts recovered from the petitioner along with interest within six weeks.

PTC-India-Financial-Services-Limited-Vs-ACIT-Delhi-High-Court

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