2022 (6) TMI 1248 - HC - Income Tax

Rectification application u/s 154 - Petitioner also seeks direction to refund along with applicable interest thereon, being the deposit of the Petitioner at the time of filing the appeal before the CIT(A) in respect of the Assessment Year 2009-10, which was allowed - as stated by petitioner the tax effect of all these six rectification applications taken together is in excess of Rs.3 crores. and the continued inaction in dealing with these rectification applications has resulted in huge financial resources of the Petitioner remaining locked-up - HELD THAT - Issue notice. Mr.Sanjay Kumar, learned standing counsel accepts notice on behalf of the Respondent-Revenue. He states that he has no objection if the rectification application and the appeal effect orders are directed to be passed within a time period. Keeping in view the aforesaid as well as the facts mentioned in the present writ petition, this Court disposes of the present writ petition along with pending application with a direction to the Respondent-Revenue to decide the Petitioner s six rectification applications in accordance with law within eight weeks. The Respondent-Revenue shall also pass the appeal effect orders for the Assessment years 2009-10 and 2012-13 within eight weeks. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open.

Summary

Issues involved:
1. Direction sought for deciding rectification applications under Section 154 of the Income Tax Act, 1961 for multiple Assessment Years.
2. Refund claim and implementation of Appellate Order for specific Assessment Years.
3. Alleged inaction leading to financial resources being locked-up.
4. Previous case reference involving recovery proceedings and directions for rectification applications.
5. Acceptance of notice by Respondent-Revenue's counsel for passing rectification orders within a specified time period.

Analysis:
1. The petitioner filed a writ petition seeking directions for the Respondent to decide six rectification applications under Section 154 of the Income Tax Act, 1961 for various Assessment Years. The total tax effect of these applications was stated to be over Rs.3 crores. The petitioner highlighted the financial strain caused by the continued inaction on these applications, leading to significant resources being locked-up.

2. Additionally, the petitioner requested a refund of Rs.10,00,000/- with applicable interest, deposited during an appeal before the CIT(A) for Assessment Year 2009-10. They also sought the implementation of an Appellate Order dated 18th August, 2015 for Assessment Year 2012-13. The petitioner's counsel emphasized the importance of addressing these issues promptly to release the financial burden on the petitioner.

3. Referring to a previous case involving the petitioner, the court noted that recovery proceedings were threatened without deciding rectification applications. In that instance, the court directed the Respondent to resolve the rectification application within a specified timeframe. This history underscored the urgency and importance of addressing rectification applications promptly to avoid unnecessary financial strain on the petitioner.

4. Upon acceptance of notice by the Respondent-Revenue's counsel, the court disposed of the writ petition with a direction for the Respondent to decide the petitioner's six rectification applications within eight weeks. The court also instructed the Respondent to pass appeal effect orders for specific Assessment Years within the same timeframe. Importantly, the court clarified that its decision did not delve into the merits of the underlying controversy, leaving the rights and contentions of all parties open for future consideration.