Case Law Details
Nokia Corporation Vs DCIT (Delhi High Court)
Introduction: The Delhi High Court has provided an update on the matter of Nokia Corporation vs DCIT, showcasing progress in the verification and refund process. This case pertains to the assessment years 1997-1998 to 2002-2003, with Nokia claiming a principal sum of Rs. 29,06,95,383/-. The court’s recent directives indicate a partial verification of Rs. 22,46,83,682/- and instructions for remittance based on an indemnity bond for the verified amount.
Refund Verification Progress: The court notes that a substantial part of the principal amount claimed by Nokia as a refund has been verified. For the mentioned assessment years, the principal sum stood at Rs. 29,06,95,383/-. Out of this, the revenue has verified Rs. 22,46,83,682/-. The court emphasizes the need for a thorough verification process and addresses the steps taken by the revenue in this regard.
Remittance Instructions and Indemnity Bond: The court informs that the verified amount, along with interest, totaling Rs. 38,58,05,020/-, will be remitted to Nokia. Mr. Sanjay Kumar, learned senior standing counsel, mentions that the release of the money will be based on an indemnity bond provided by Nokia. This alternative solution is discussed in light of incomplete records, and the court directs the revenue to proceed accordingly.
Court’s Disposal and Future Actions: The writ petition is disposed of with a directive for the revenue to continue efforts in locating and verifying the remaining claim. In case the records cannot be located, the court instructs the revenue to proceed with the information furnished by Nokia and release the money based on the indemnity bond. The timeline for completing this exercise is set at eight weeks.
Compliance and Remittance: The court specifies that compliance with the directives will be reviewed on December 7, 2023. As a measure of immediate action, the revenue is instructed to ensure the remittance of the already verified amount of Rs. 38,58,05,020/- (inclusive of interest) to Nokia within the next four weeks.
Conclusion: The Delhi High Court’s recent order in the Nokia vs DCIT case reflects progress in the verification and refund process. The court’s directives highlight the importance of a comprehensive verification process, ensuring compliance with timelines, and offering alternative solutions such as indemnity bonds to facilitate the refund. Nokia awaits the resolution of the remaining claim, with the court overseeing the next steps in this ongoing legal matter.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. There has been some progress in the matter, inasmuch as a substantial part of the principal amount claimed as refund has been verified.
2. For the Assessment Years (AYs) in issue, i.e., AYs 1997-1998 to 2002-2003, the principal sum claimed by the petitioner was Rs. 29,06,95,383/-.
3. Out of the said principal amount, the respondents/revenue have verified an amount equivalent to Rs. 22,46,83,682/-.
4. As per the instructions received by Mr Sanjay Kumar, learned senior standing counsel, the aforementioned verified amount, along with interest, which totals up to Rs. 3 8,58,05,020/-, would be remitted to the petitioner.
5. Insofar as the balance amount is concerned, Mr Kumar says that the verification process is on.
6. We have already indicated in our order dated 22.05.2023 that if the record of the respondents/revenue is incomplete, they will come up with an alternate solution. As indicated in the order, one such solution which was placed before the Court by the petitioner was that the release of the money could be accompanied by an indemnity bond.
7. As a matter of fact, the hard copy of the instructions received by Mr Kumar via email dated 12.09.2023, states that refund will be issued based on indemnity bond furnished by the petitioner. (See paragraph 9 of the email dated 12.09.2023).
8. Therefore, this writ petition is disposed of, with a direction that respondent/revenue will endeavour to locate the record and verify the claim.
8.1 In case they are unable to locate their record, they will proceed with the information furnished by the petitioner and release the money based on the indemnity bond furnished by the petitioner.
9 This exercise will be completed in the next eight (8) weeks.
10. Needless to add, since respondents/revenue have already verified a part of the refund claim, amounting to Rs. 38,58,05,020/- (inclusive of interest), the respondents/revenue will ensure that remittance qua this amount is made to the petitioner/assessee within the next four (4) weeks.
11.The writ petition is disposed of in the aforesaid terms.
12. List for compliance on 07.12.2023.
13. Registry will scan and upload the email dated 12.09.2023 placed before this Court by Mr Kumar, so that it remains embedded in the case file.
