Hitachi Digital Services India Private Limited Vs ACIT (Telangana High Court)
Telangana High Court Directs Income-Tax Department to Decide Pending Section 154 Rectification Application Within 45 Days
Summary: The Telangana High Court disposed of a writ petition filed by Hitachi Digital Services India Private Limited seeking directions to the Income Tax Department concerning a rectification application dated 17 August 2023 under Section 154 of the Income-tax Act, 1961, relating to Assessment Year 2017-18. The application sought rectification of an order dated 30 November 2019, and the petitioner had also submitted a representation dated 26 July 2024. In its writ petition under Article 226 of the Constitution, the company requested a reasoned decision on the rectification application, consequential processing of any refund and applicable interest under Section 244A. During the hearing, however, the petitioner’s counsel confined the immediate request to a direction for consideration and disposal of the rectification application and subsequent representation. The Income Tax Department’s Senior Standing Counsel submitted that, subject to verification of their pendency, appropriate steps would be taken for an expeditious decision. Considering these submissions, the High Court directed the concerned authority to verify whether the application and representation remained pending. If they were pending, the authority was required to decide them within 45 days after providing the petitioner a reasonable opportunity of hearing. The Court did not adjudicate the merits of the rectification claim or independently order a refund or interest payment. The writ petition was disposed of without costs, and pending miscellaneous applications were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Heard Ms. K. Prabhabati, learned counsel appearing for the petitioner and Ms. J. Sunitha, learned Senior Standing Counsel appearing for the respondent-Income Tax Department.
2. This Writ Petition is filed under Article 226 of the Constitution of India seeking the following relief:
“… to issue an appropriate Writ, Order or Direction, more particularly one in the nature of Writ of Mandamus, directing Respondent No.2:
(a). to take up, consider and dispose of the Petitioner’s rectification application dated 17.08.2023 filed under Section 154 of the Income-tax Act, 1961 pertaining to Assessment Year 2017-18 by passing a reasoned and speaking order in accordance with law and process the refund due within a time bound manner of four weeks; and
(b). direct the Respondents to complete the aforesaid exercise within a period of four weeks or such other time as this Hon’ble Court may deem fit, from the date of receipt of a copy of the order of this Hon’ble Court;
(c). direct Respondent No.2 to consider Petitioner’s further representation dated 26.07.2024 along with the rectification application dated 17.08.2023 and all documents already furnished by the Petitioner;
(d). direct that, in the event the rectification application results in reduction/deletion of the demand or refund becoming due, the Respondents shall give consequential effect thereto, including applicable interest under Section 244A of the Act, in accordance with law; and pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case and process the refund due within a time bound manner of four weeks.”
3. Learned counsel for the petitioner at the outset makes a limited prayer for a direction to respondent No.2 for considering and deciding the application dated 17.08.2023 filed by the petitioner under Section 154 of the Income Tax Act, 1961 seeking rectification of the order, dated 30.11.2019, for the assessment year 2017-18, and the representation dated 26.07.2024.
4. Learned Senior Standing Counsel for Income Tax Department submits that subject to verification and if the application under Section 154 of the Income Tax Act and the representation are still pending, appropriate steps shall be taken for an expeditious decision on the said applications.
5. In view of the same, we do not intend to keep the Writ Petition pending and the same is disposed of directing respondent No.2 to verify whether the petitioner’s application filed under Section 154 of the Income Tax Act, 1961, against the order dated 30.11.2019 for the assessment year 2017-18 and the representation, dated 26.07.2024, are pending or not and if the same are pending, let a decision be taken within a period of forty five (45) days after affording a reasonable opportunity to the petitioner.
6. With the above direction, the Writ Petition is disposed of. There shall be no order as to costs.
Miscellaneous applications, if any pending, shall stand closed.
