Deputy/ACIT Vs Blue Yonder India Pvt. Ltd. (Karnataka High Court)
The Karnataka High Court dismissed the Revenue’s intra-court appeal challenging the order of a Single Judge directing refund of taxes with interest to the assessee. The case related to Assessment Year 2003–04, where the assessee’s return was subjected to scrutiny and transfer pricing adjustments. The Commissioner (Appeals) partly allowed the assessee’s appeal, following which both parties approached the Tribunal. By order dated 3 April 2017, the Tribunal remitted certain issues to the Transfer Pricing Officer (TPO) for fresh consideration.
Subsequently, after nearly two years, the TPO passed an order on 24 October 2019 making transfer pricing adjustments, resulting in a demand on the income-tax portal. The assessee objected to the demand and sought refund of taxes, citing absence of an order giving effect to the Tribunal’s decision. Due to inaction, the assessee filed a writ petition seeking refund of ₹19.89 crore.
The Single Judge, relying on Section 153 of the Income Tax Act and earlier Division Bench decisions, held that further proceedings were not permissible and directed the Revenue to process the refund with interest within three months.
The Revenue argued that since the original assessment was prior to the 2016 amendment, the earlier law—without prescribed limitation—should apply, allowing orders to be passed at any time. The assessee countered that even under the amended provisions, proceedings were barred by limitation and no order giving effect had been passed.
