Facts of the Case

  • The Petitioner, Qualcomm Technologies, Inc., filed its return of income for AY 2014–15.
  • The grievance of the Petitioner was that despite completion of proceedings, the Respondents had failed to process the return correctly and issue the due refund along with interest.
  • The Petitioner approached the Delhi High Court under writ jurisdiction seeking appropriate directions.
  • During the hearing, the Respondents informed the Court that the appeal effect order had already been passed and the refund had been generated.

Issues Involved

  1. Whether the Income Tax Department is obligated to process the return and issue refund along with applicable interest within a reasonable time?
  2. Whether a writ petition under Article 226 is maintainable for seeking refund and interest where delay persists on the part of the Revenue?

Petitioner’s Arguments

  • The Respondents failed to process the return of income properly.
  • The refund due to the Petitioner had not been issued despite entitlement.
  • The Petitioner was also entitled to statutory interest on such refund under applicable provisions of the Income Tax Act.
  • The delay in granting refund was arbitrary and unjustified, warranting judicial intervention.

Respondent’s Arguments

  • The Respondents submitted that the Assessing Officer had already passed the appeal effect order.
  • It was stated that the refund had been generated.
  • An undertaking was given before the Court that the refund along with applicable interest would be credited to the Petitioner’s bank account within six weeks.

Court’s Findings / Order

  • The Court recorded the undertaking given by the Respondents regarding issuance of refund along with interest.
  • The Court also recorded the Petitioner’s undertaking to complete any formalities required for updating bank account details.
  • In view of the undertakings, the Court disposed of the writ petition and pending application.

Important Clarification

  • The Court did not adjudicate on merits but disposed of the matter based on undertakings.
  • The order reinforces that refund along with statutory interest must be granted within a reasonable time.
  • It highlights that writ jurisdiction can be invoked in cases of administrative delay in issuing refunds.

Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2022:DHC:471-DB/MMH04022022CW21452022_222737.pdf

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