2023 (9) TMI 494 - HC - Income Tax

Rectification application not been disposed of - timeline fixed u/s 154(a) and 154(8) of the Income Tax Act, 1961 is six (6) months - HELD THAT - The period involved goes way beyond the statutory timeline fixed for the disposal of a rectification application. This is also the position that obtains as per Instruction No. 1 of 2016 dated 15.02.2016. That said, we find it difficult to understand why the petitioner did not approach the Court within a reasonable period. Repeated representations to the Assessing Officer (AO) and grievances sought cannot explain, in our view, the delay and laches in approaching the Court. The period involved is more than seven (7) years. Therefore, we dispose of the writ petition with the following directions (i) The concerned officer will dispose of the rectification application within four (4) weeks of receipt of a copy of the judgment. (ii) The AO will bear in mind that the first representation to the respondent was made on 09.10.2019. We are therefore, of the opinion that interest between the period after the expiry of six (6) months from when the rectification application was filed and 09.10.2019 in the facts of this case, ought not to be paid to the petitioner.

Summary

Issues involved: Delay in disposal of rectification application under the Income Tax Act, 1961.

The petitioner filed a writ petition seeking a Writ of mandamus to direct the Respondent to dispose of the rectification application dated 25.05.2016 within four weeks and grant consequential refund with applicable interest under Section 244A of the Act. The petitioner was aggrieved by the non-disposal of the application within the statutory timeline of six months as per the Act and Instruction No. 1 of 2016.

The Court noted the significant delay of over seven years in approaching the Court despite repeated representations to the Assessing Officer. The Court acknowledged the statutory timeline of six months for disposal of rectification applications and directed the concerned officer to dispose of the application within four weeks of receiving a copy of the judgment. The Court also decided that interest need not be paid to the petitioner for the period after the expiry of six months from the filing of the rectification application until 09.10.2019, considering the delay in approaching the Court. The parties were instructed to act based on the digitally signed copy of the order.