Case Note & Summary
The petitioner, Vodafone Idea Limited, filed a Writ Petition before the Bombay High Court seeking a Writ of Mandamus for refund of Rs.1009,43,88,637/- as quantified by a rectification order dated 28th May, 2020 under Section 245 of the Income Tax Act, 1961. The petitioner had filed its return of income on 30th September, 2015 for Assessment Year 2015-16, declaring a total income of Rs.1,02,88,43,44,750/- and claiming a refund of Rs.1,009,43,88,637/-. The Assessing Officer passed an assessment order under Section 143(3) read with Section 144B of the Act on 28th May, 2020, determining a total income of Rs.1,02,88,43,44,750/- and granting a refund of Rs.1,009,43,88,637/-. However, the revenue subsequently issued a notice under Section 154 proposing to rectify the assessment order, and passed a rectification order under Section 154 read with Section 155 of the Act on 28th May, 2020, reducing the refund to Rs.833,04,88,000/-. The petitioner challenged the rectification order and sought refund of the admitted amount of Rs.833,04,88,000/-. The court, after hearing the parties, directed the respondents to refund the admitted amount of Rs.833,04,88,000/- within four weeks from the date of the order, subject to verification of the PAN and other details. The court held that the revenue cannot retain the admitted refund amount and that the petitioner is entitled to the refund as an interim measure.
Headnote
A) Income Tax - Refund - Section 245 of the Income Tax Act, 1961 - Rectification Order - The petitioner sought refund of Rs.833,04,88,000/- admitted by the revenue in a rectification order dated 28th May, 2020. The court held that the revenue cannot retain the admitted refund amount and directed refund within four weeks, subject to verification. (Paras 1-14) B) Income Tax - Interim Relief - Mandamus - The court considered the petitioner's prayer for interim relief in a writ petition seeking refund of Rs.1009,43,88,637/-. The court directed refund of the admitted amount of Rs.833,04,88,000/- as an interim measure, holding that the revenue's retention of the admitted refund is unjustified. (Paras 3-14)
Issue of Consideration
Whether the petitioner is entitled to an interim direction for refund of the admitted amount of Rs.833,04,88,000/- as per the rectification order dated 28th May, 2020 under Section 245 of the Income Tax Act, 1961.
Final Decision
The court directed the respondents to refund the admitted amount of Rs.833,04,88,000/- to the petitioner within four weeks from the date of the order, subject to verification of PAN and other details. The petition is to be listed for further hearing in due course.
Law Points
- Refund of admitted amount
- Section 245 rectification order
- Interim relief
- Mandamus for refund
- Income Tax Act
- 1961
