Delhi High Court
Nortel Networks India Private ... vs Deputy Commissioner Of Income ... on 9 September, 2022
$~10 & 11
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 13053/2022 & C.M.No.39538/2022
NORTEL NETWORKS INDIA PRIVATE LIMITED ..... Petitioner
Through: Mr.Kamal Sawhney with Mr.Prashant
Meharchandani, Mr.Nishank
Vashistha, Mr.Nikhil Agarwal and
Mr.Arun Bhadauria, Advocates.
versus
DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 16(1)
NEW DELHI ..... Respondent
Through: Mr.Abhishek Maratha, Sr.Standing
Counsel for the Revenue.
+ W.P.(C) 13054/2022 & C.M.No.39539/2022
NORTEL NETWORKS INDIA PRIVATE LIMITED ..... Petitioner
Through: Mr.Kamal Sawhney with Mr.Prashant
Meharchandani, Mr.Nishank
Vashistha, Mr.Nikhil Agarwal and
Mr.Arun Bhadauria, Advocates.
versus
DEPUTY COMMISSIONER OF INCOME TAX ..... Respondent
Through: Mr.Abhishek Maratha, Sr.Standing
Counsel for the Revenue.
% Date of Decision: 09th September, 2022
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
W.P.(C) Nos.13053/2022 & 13054/2022 Page 1 of 4
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:12.09.2022
18:08:30
JUDGMENT
MANMOHAN, J (Oral):
1. Present writ petitions have been filed seeking directions to the
Respondent to decide the rectification applications dated 19th December,
2018 and 26th December, 2018 as well as the representation dated 01st
September, 2022 filed by the Petitioner for the Assessment Years 2009-10
and 2010-11 and to credit the consequential refund along with the
applicable interest in the bank account of the Petitioner.
2. Learned counsel for the Petitioner states that due to the inaction of the
Respondent, the Petitioner is being deprived of substantial amount of
refund along with interest under Section 244A of the Income Tax Act,
1961 ('the Act') and instead, incorrect demands of Rs.35,33,160/- and
Rs.7,75,66,030 have been raised against the Petitioner. He states that even
though the Assessing Officer is bound to decide the rectification
applications filed by the Petitioner within a period of six months as per
Section 154 of the Act, the Petitioner's rectification applications are
pending adjudication before the Assessing Officer for the past three years.
He also relies on the Circular No.14/2001 read with Instruction
no.01/2016, which mandates the Respondent to strictly comply with the
statutory limitation provided in Section 154(8) of the Act in disposing of
the Petitioner's rectification applications. He further states that the
Citizen's Charter of 2014 and 2010 issued by Income Tax Department
states that, in cases where decision on application for rectification is to be
given by Department, the same must be done within two months from the
end of the month in which such application is received.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:12.09.2022
18:08:30
3. Learned counsel for the Petitioner states that the Petitioner has
addressed various letters to the authorities requesting them to decide the
Petitioner's rectification applications but to no avail. He states that the
parent company of the Nortel Group had filed for bankruptcy protection
under the Companies Creditor Arrangement Act in Canada in the year 2009
and since then the efforts of the Nortel Group have been focused towards
closure of their business operations globally including that of the
Petitioner. He states that the Petitioner is attempting to close all the
pending matters at the earliest, including the rectifications applications
pending with the Respondent.
4. Issue notice. Mr.Abhishek Maratha, learned senior standing counsel
accepts notice on behalf of the Respondent-Revenue. He prays for some
time to obtain instructions.
5. However, this Court finds that CBDT instruction No.2/2013 [F. No.
225/76/2013/ITA.II] dated 05th July, 2013 and Letter [F. No.225/148/2015-
ITA-II], dated 05th July, 2015 stipulates that the Assessing Officers must
strictly follow the time limit of six months provided under Section 154(8)
of the Act in disposing of the rectification applications.
6. Further, this Court in Nortel Networks India International Inc. Vs
Asst. CIT, WPC 12236/2021 and Cheil India Private Limited Vs. Deputy
CIT & Anr., WPC 11683/2021 has given directions to the respondents to
dispose of similar rectification applications in a time-bound manner.
7. Consequently, this Court disposes of the present writ petition and
application with a direction to the concerned Respondent to decide the
Petitioner's rectification applications dated 19th December, 2018 and 26th
December, 2018 filed under Section 154 of the Act as well as the
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:12.09.2022
18:08:30
representation dated 01st September, 2022, in accordance with law by way
of a reasoned order within six weeks. In the event of refund, if any, the
same shall be granted to the Petitioner with applicable interest within the
aforesaid period.
8. List the matters for compliance on 08th February, 2023.
MANMOHAN, J
MANMEET PRITAM SINGH ARORA, J
SEPTEMBER 09, 2022
KA
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:12.09.2022
18:08:30
