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Judgment
,,,,,,,,,
Manmohan, J",,,,,,,,,
The petition has been heard by way of video conferencing.,,,,,,,,,
Present writ petition has been filed with the following prayers:-,,,,,,,,,
a) issuance of a writ of certiorari quashing the Impugned Order No.1 dated June 11, 2020 issued by CPC adjusting the entire refund for AY",,,,,,,,,
2019-20 against the disputed demand for AY 2017-18;and,,,,,,,,,
b) issuance of a writ of mandamus directing the Respondent No. 1 to refund the amount adjusted in excess of 20% of the disputed demand,,,,,,,,,
for AY 2017-18; and,,,,,,,,,
c) issuance a writ of mandamus restraining the Respondents No. 1and 2 from further recovery of outstanding tax demand for AY 2017-18,,,,,,,,,
until the disposal of appeal filed by the Petitioner before the Commissioner (Appeals) which is pending adjudication under the Faceless,,,,,,,,,
Appeal Scheme, 2020;and",,,,,,,,,
d) issuance of a writ of certiorari quashing the Impugned Order No.2 dated December 21, 2020; and",,,,,,,,,
e) imposition of exemplary costs on Respondent No.1 for carrying out a blatantly illegal recovery of tax against the accepted principles of,,,,,,,,,
reasonableness, judicial discipline and law",,,,,,,,,
f) For ad-interim reliefs as the Court may deem fit; and,,,,,,,,,
g) For the costs of this Petition;,,,,,,,,,
h) Pass any other further order (s) / direction (s) as this Hon’ble Court may deem fit and proper in the fact and circumstances of the,,,,,,,,,
case.,,,,,,,,,
On 03rd June, 2021, the learned predecessor Division Bench had passed the following order:-",,,,,,,,,
“CM APPL. 18229/2021,,,,,,,,,
Allowed, subject to just exceptions.",,,,,,,,,
CM APPL. 18230/2021,,,,,,,,,
The prayer made in the captioned application is to grant extension for filing the court-fee and notarised affidavits along with the present,,,,,,,,,
petition. The captioned application is disposed of with a direction to the petitioner to place on record the duly notarised affidavits and,,,,,,,,,
deposit the requisite court fee, within three days from the resumption of the normal and usual work pattern by this court.",,,,,,,,,
W.P.(C) 5819/2021,,,,,,,,,
The petitioner is aggrieved as, the refund available to it in respect of the assessment year („AY‟) 2019 -2020, was adjusted against the",,,,,,,,,
disputed demand qua AY 2017-2018.,,,,,,,,,
3.1. Mr. Himanshu Sinha, who appears on behalf of the petitioner, says that the adjustment is in excess of 20%, which is contrary to the",,,,,,,,,
guidelines contained in the Office Memorandum, dated 29.02.2016, issued by the Central Board of Direct Taxes.",,,,,,,,,
The record shows that the petitioner had made several requests for course correction, vide letters dated 14.01.2021, 26.02.2021 and",,,,,,,,,
10.03.2021. These communications are addressed to the Principal Commissioner of Income Tax, Delhi-I (in short ‘PCIT’) and are",,,,,,,,,
appended on pages 74, 77 and 84 of the paper book.",,,,,,,,,
Issue notice.,,,,,,,,,
5.1. Mr. Zoheb Hossain accepts service on behalf of the respondents/ revenue. Counter-affidavit will be filed within the next four weeks.,,,,,,,,,
Rejoinder thereto, if any, will be filed before the next date of hearing.",,,,,,,,,
In the meanwhile, the PCIT will deliberate and deal with the petitioner's communications, dated 14.01.2021, 26.02.2021 and 10.03.2021.",,,,,,,,,
The PCIT will pass a speaking order, after according a hearing to the authorised representative of the petitioner.",,,,,,,,,
List the matter on 03.08.2021.,,,,,,,,,
In the meanwhile, the respondents/revenue will maintain status quo with regard to the future adjustments qua refunds, if any, available to",,,,,,,,,
the petitioner, till the next date of hearing. It is made clear that, notwithstanding this direction, the plea made in the aforementioned",,,,,,,,,
communications addressed to the PCIT, concerning adjustment of future refunds, if any, being made available to the petitioner, will be dealt",,,,,,,,,
with by the PCIT.â€,,,,,,,,,
Today learned counsel for the respondent has screen shared the order dated 02nd July, 2021 passed by the Principal Commissioner, Income Tax,",,,,,,,,,
Delhi-1 disposing of the petitioner’s representations dated 14th January, 2021, 26th February, 2021 and 10th March, 2021. The relevant portion of",,,,,,,,,
the said order reads as under:-,,,,,,,,,
“9. Considering the directions of Hon’ble Delhi High Court, letter was sent to the assessee on 24.06.2021 and the case is fixed for",,,,,,,,,
hearing on 29.06.2021. Shri Gautam Seth (CFO) of the assessee attended the office of the undersigned on 01.07.2021. The case is,,,,,,,,,
discussed with him. The CFO and the authorized representative principally agreed that the remaining demand of the assessee may kindly be,,,,,,,,,
stayed and the refund due in future may not be adjusted.,,,,,,,,,
PAN
AABCE8314 M","AY
2019-20",,"Refund Sequence
NO.:","Document Identification No.
CPC/1920/G23/1967229611",,,,,
Return Filed under section : 139,,,,"Reference to 245 Notice:
CPC/1920/G8/1967229611",,,,,
Date of Communication :
11-06-2020",,,,,,,,,
E-filing Acknowledgment
No: 214987561231019",,"Date of Filing Return:
23-10-2019",,"Date of Order:
17-03-2020","ITR Type:
ITR-6 ORIGINAL",,,,
SL
No.
(1).",AY(2),"Demand
Amount (3)",DIN (4),"Order
dated (5)","Section
(6)","Taxpayer’s
Response (7)","Amount of
adjustment
(8)",,"Remarks
(9)
1,"2017-
18",96876430,2019201737081640000,"19-12-
2019",143(3),"No response
for the
demand",37951270,,
Net Amount Refundable,,,,,,,,0,
Court is of the view that the respondent is entitled to seek pre-deposit of only 20% of the disputed demand during the pendency of the appeal in,,,,,,,,,
accordance with paragraph 4(A) of the office memorandum dated 29th February, 2016, as amended by the office memorandum dated 25th August,",,,,,,,,,
2017.,,,,,,,,,
Accordingly, the respondent no.1 is directed to refund the amount adjusted in excess of 20% of the disputed demand for the Assessment Year",,,,,,,,,
2017-18, within four weeks. This Court clarifies that it is not granting any relief with regard to prayer (c), as the Principal Commissioner, Income Tax",,,,,,,,,
vide order dated 02nd July, 2021, as reproduced hereinabove, has already granted the said prayer.",,,,,,,,,
With the aforesaid directions, the present writ petition stands disposed of.",,,,,,,,,
The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.,,,,,,,,,