Arbitrary Adjustment in Income Tax S.143(1) Intimation Order: Patna HC Imposes Rs. 50,000 Cost for Delayed Litigation [Read Order]
The Court noted the undue delay in receiving the financial dues, prompting the intervention after more than a year
![Arbitrary Adjustment in Income Tax S.143(1) Intimation Order: Patna HC Imposes Rs. 50,000 Cost for Delayed Litigation [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Patna-High-Court-Arbitrary-Adjustment-Litigation-taxscan.jpg "Arbitrary Adjustment in Income Tax S.143(1) Intimation Order: Patna HC Imposes Rs. 50,000 Cost for Delayed Litigation [Read Order]")
In a recent ruling, the High Court of Patna imposed a cost of Rs. 50,000 for delayed litigation, following a challenge by the petitioner against an arbitrary adjustment in the Income Tax Section 143(1) intimation order.Alkem Laboratories Limited, petitioner-assessee, filed a writ petition to challenge the intimation order under Section 143(1) dated 29.07.2023. The order, issued by the...
In a recent ruling, the High Court of Patna imposed a cost of Rs. 50,000 for delayed litigation, following a challenge by the petitioner against an arbitrary adjustment in the Income Tax Section 143(1) intimation order.
Alkem Laboratories Limited, petitioner-assessee, filed a writ petition to challenge the intimation order under Section 143(1) dated 29.07.2023. The order, issued by the Deputy Director of Income Tax, showed an income of Rs.2662,45,70,910/- instead of the returned income of Rs.515,17,04,850/-. The petitioner argued that the adjustment of Rs.2147,28,66,060/- was wrong, illegal, and violated legal rules and natural justice.
During the case, the respondent paid the petitioner Rs.33 crores in installments: Rs.23 crores in August 2024, Rs.47 lakhs in December 2024, Rs.26.73 lakhs in December 2024, and Rs.9 crores and 63 lakhs on 21.01.2025, along with interest on the delayed refund.
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The division bench of Justice P.B.Bajanthri and Justice Sunil Dutta Mishra noted that the case was now resolved. However, the taxpayer had been unnecessarily delayed in receiving his financial dues, causing him to seek the Court’s intervention after waiting over a year.
While interest was paid, the court decided to impose a cost of Rs.50,000 (Rupees Fifty Thousand) for the litigation. The amount was to be paid to the Lawyers’ Association Welfare Benevolent Fund within four months of receiving the order.
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In short,the writ petition was disposed of.
To Read the full text of the Order CLICK HERE
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