Sulzer Pumps India Private Limited Vs ACIT (Bombay High Court)
Bombay High Court ruled in favor of Sulzer Pumps India Pvt. Ltd., setting aside income tax refund adjustments made under Section 245 of the Income Tax Act for assessment years 2012-13, 2013-14, and 2014-15. The court found that the Income Tax Department had failed to provide proper notice before making the adjustments, violating due process. In Writ Petition No. 4892 of 2024, the respondents admitted that while a notice had been prepared, it was never issued to the petitioner. The court, referencing past judgments in Hindustan Unilever Ltd. v. DCIT, Jet Privilege (P) Ltd. v. DCIT, and Greatship (India) Ltd. v. ACIT, quashed the order dated June 5, 2023, but allowed the department to issue a fresh notice and proceed as per the law.
Similarly, for Writ Petitions Nos. 4891 and 4879 of 2024, the petitioners claimed they had not received prior intimation under Section 245. The respondents asserted that a communication was sent but failed to provide proof of service. Given the lack of clear evidence, the court set aside the orders dated May 8, 2023, and June 5, 2023, directing the respondents to deposit the refundable amounts in a nationalized bank within two weeks. The funds will be held until a fresh decision is made within two months. If no new orders are issued within this period, the petitioners can apply for withdrawal of the amount along with accrued interest. The court ruled in favor of the petitioners but left all contentions open for further proceedings.
