Case Law Details
Intertek India Private Limited Vs ACIT (Delhi High Court)
Introduction: The recent judgment by the Delhi High Court in the case of “Intertek India Private Limited Vs ACIT” sheds light on the importance of timely disposal of rectification applications under the Income Tax Act, 1961. The court’s directive to dispose of the application within four weeks has raised questions about the prolonged delay in this case.
Detailed Analysis: The crux of the petitioner’s grievance revolves around the inordinate delay in processing their rectification application, dated 25.05.2016. According to sections 154(a) and 154(8) of the Income Tax Act, the statutory timeline for such disposal is six months. This statutory timeline was reinforced by Instruction No.1 of 2016 dated 15.02.2016.
However, what raises eyebrows is the fact that the petitioner did not approach the court within a reasonable period. Despite repeated representations to the Assessing Officer (AO) and grievances sought, the delay persisted for over seven years. This delay cannot be adequately explained solely by the petitioner’s interactions with the AO.
The court’s decision to dispose of the writ petition with specific directions is noteworthy. First, it mandates the concerned officer to resolve the rectification application within four weeks of receiving the judgment. Second, the court has taken into account that the first representation to the respondent was made on 09.10.2019. Consequently, it rules that interest between the period after six months from the application’s filing date and 09.10.2019 need not be paid to the petitioner.
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