Alkem Laboratories Limited Vs Deputy Director of Income Tax (Rajasthan High Court)
The Rajasthan High Court addressed a writ petition filed by Alkem Laboratories Limited against the Deputy Director of Income Tax (DDIT), CPC, Bangalore, concerning an intimation order under Section 143(1) of the Income Tax Act. Alkem Laboratories challenged the order dated July 29, 2023, wherein their income was computed at a significantly higher amount of ₹26,62,45,70,910 compared to their returned income of ₹5,15,17,04,850. This resulted in an adjustment of ₹21,47,28,66,060, which the petitioner argued was contrary to the mandatory provisions of the first and second provisos to Section 143(1), arbitrary, illegal, and in violation of natural justice principles. The primary relief sought by Alkem Laboratories was the quashing of this intimation order.
During the pendency of the legal proceedings, the respondent disbursed the petitioner’s due refund of ₹33 crores in several installments between August 2024 and January 2025, along with interest for the delayed refund. Consequently, the court noted that the substantive issue of the refund was resolved. However, the court observed that Alkem Laboratories was unnecessarily harassed and compelled to seek legal recourse to obtain their rightful financial dues, causing a delay of over a year. While acknowledging the payment of interest, the Rajasthan High Court deemed it appropriate to impose a cost of ₹50,000 on the respondent for the delayed litigation. This cost is to be remitted to the Lawyers’ Association Welfare Benevolent Fund within four months from the receipt of the order. With these observations, the court disposed of the writ petition and any pending interlocutory applications.
