Case Law Details
HDFC Bank Limited vs. The Assistant Commissioner of Income-tax 2(3) & Ors (Bombay High Court), Writ Petition (Lodging) No. 770 Of 2013, APRIL 4, 2013
In this case Assessee has made out a strong prima facie case for a stay of the recovery of the demand in respect of the aforesaid three items viz.; (i) Dis allowance of broken period interest; (ii) Dis allowance of amortization of premium, and (iii) Dis allowance of exemption on dividend income from the mutual fund units. The recovery of the demand on these three heads has to be stayed in view of a strong prima facie case being made out. The balance due and payable by the assessee would work out to Rs.159.49 crores. The assessee has under cover of its letter dated 28 March 2013 paid an amount of Rs.100 crores under protest.
On these facts and for the reasons we have adduced earlier, we hold that the action of the department in adjusting the refunds due to the assessee in the amount of Rs.49.56 crores for Assessment Year 2008-09 and Rs.518.30 crores for Assessment Year 2009-10 was contrary to law. To recapitulate, the impugned order accepts the position that the assessee is covered by the decision of the Commissioner of Income-tax (Appeals) and hence directs that the assessee shall not be treated as assessee in default while at the same time making an adjustment of the refund.
In the circumstances, we are of the view that the interests of justice would be served if the department is permitted to make an adjustment to an extent of Rs.60 crores. The balance which is refundable, for Assessment Years 2008-09 and 2009-10 shall be refunded together with interest as admissible in accordance with law within a period of three weeks from the date on which an authenticated copy of this order is produced on the record.
Rule is made absolute in the aforesaid terms. There shall be no order as to costs.
