Delhi High Court
M/S Fis Payment Solutions & ... vs Deputy Commissioner Of Income ... on 21 September, 2020
#7
IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment Delivered On: 21.09.2020
W.P.(C) 3273/2020 & CM APPL.23360/2020
M/S FIS PAYMENT SOLUTIONS &
SERVICES INDIA PRIVATE LIMITED ..... Petitioner
versus
DEPUTY COMMISSIONER OF INCOME
TAX-9(1) AND ANR. ..... Respondents
Advocates who appeared in this case:
For the Petitioner : Mr. Deepak Chopra, Mr. Abhimanyu Chopra and
Mr. Ankul Goyal, Advocates
For the Respondents : Mr. Ruchir Bhatia, Senior Standing Counsel with
Mr. Shlok Chandra and Ms. Mansie Jain, Advocates
CORAM:
HON'BLE MR. JUSTICE SIDDHARTH MRIDUL
HON'BLE MR. JUSTICE TALWANT SINGH
JUDGMENT
SIDDHARTH MRIDUL, J. (Open Court - via Video Conferencing)
1. The present writ petition under Articles 226/227 of the
Constitution of India, has been instituted on behalf of M/s FIS
Payment Solutions & Services India Private Limited, the petitioner
herein, praying as follows:
(a) Issue a writ of mandamus or any other appropriate writ
quashing proceedings undertaken by the First respondent
vide letter dated 03.03.2020 seeking to withhold the
refunds for Assessment Year 2018-19 and the approval
granted by the Second respondent on 09.03.2020 to
invoke section 241A of the Act on the request made by
the First Respondent on 03.03.2020.
(b) Issue a writ of mandamus or any other appropriate writ
directing the respondent/s to release the refund of INR
74,88,99,152/- along with applicable interest under
section 244A of the Act, till the date of issuance of the
refund, for Assessment Year 2018-19.
(c) Pass such other orders which this Hon'ble Court may
deem fit and proper on the facts and in the circumstances
of the case.
2. It is observed that this is the second round of litigation between
the parties qua the refund of tax, which the petitioner claims to be
entitled to, in relation to the Assessment Year 2018-19.
3. In the earlier round where similar relief was prayed for, a
Coordinate Bench of this Court in writ petition being W.P. (C)
2243/2020 titled as 'M/s. FIS Payment Solutions & Services India
Private Limited vs. Deputy Commissioner of Income Tax-9(1) & Anr.',
on 03.03.2020, was pleased to pass the following order:-
"Issue notice. Mr. Bhatia accepts notice.
The petitioner seeks refund of the tax from the
respondents. In relation to the Assessment Year 2017-
18, the petitioner's assessment has been completed under
Section 143(3) of the Income Tax Act. So far as the
Assessment Year 2018-19 is concerned, the petitioner's
return, as filed, has been processed under Section 143(1)
of the Income Tax Act. The amount due towards refund
for both the assessment years is substantial. Prima-facie,
it appears that there is no justification for the
respondents not granting the refund when the same is
due.
We, therefore, direct the respondents to refund the
amounts for both the assessment years along with
interest as applicable, to the petitioners within four
weeks from today. In case the respondents have any
valid justification for withholding the refund, or any part
thereof, they shall file their counter-affidavit positively
within the same period clearly stating as to why the
refund/ partial refund is not due. No further time shall be
granted for the said purpose.
List on 06.05.2020.
Order Dasti under the signatures of the Court
Master."
4. On the very same day, vide order dated 03.03.2020, a proposal
was made by the Assessing Officer to withhold the subject refund,
pending completion of scrutiny assessment proceedings for the
Assessment Year 2018-19 under the provisions of Section 143 (3) of
the Income Tax Act, 1961 (hereinafter referred to as 'the said Act').
5. The Principal Commissioner of Income Tax-3 vide order dated
09.03.2020 granted approval for withholding of the refund for the
Assessment Year 2018-19 under section 241A of the said Act.
6. The limited relief prayed for on behalf of the petitioner in these
proceedings is that the orders impugned in these proceedings are in the
teeth of the guidelines enunciated by this Court in Mapel Logistics
Pvt. Ltd. vs. Principal Commissioner of Income Tax, reported as
(2019) 112 Taxman 199 (Delhi), and may, therefore, be remitted back
to the Respondents for de novo consideration, in accordance with law.
7. Having heard learned counsel appearing on behalf of the parties
and in view of the guidelines in Mapel Logistics (supra), as well as,
the directions contained in the said order dated 03.03.2020 rendered
by the Coordinate Bench, we allow the present petition and remit the
matter back to the Assessing Officer to pass a fresh speaking order,
after affording an opportunity of being heard to the petitioner and
further permitting them to place on record the additional affidavit
dated 01.06.2020, filed before this Court, in accordance with law,
within a period of six weeks from today.
8. No further directions are called for.
9. With the above direction, the present petition is disposed of.
The pending application also stands disposed of.
10. A copy of this judgment be provided electronically to the
learned counsel for the parties and be also uploaded on the website of
this Court forthwith.
SIDDHARTH MRIDUL
(JUDGE)
TALWANT SINGH
(JUDGE)
SEPTEMBER 21, 2020/dn/mr
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