Relief to JLL: Delhi HC directs Income Tax Dept to process Refund Rs. 355 cr after considering Rectification Application [Read Order]

JLL - Delhi High Court - income tax department - Refund - Rectification Application - Taxscan

In a major relief to M/s Jones LNG Lasalle Property Consultants (India) Private Limited, the Delhi High Court has directed the income tax department to process a refund of Rs. 355 Crore after considering the rectification applications filed in last few years.

The Petitioner is engaged in the business of real estate consultancy and advisory services, brokerage, project management, design and construction of office interiors, integrated facility management and shared service office services. The petitioner contended that the Petitioner was issued a notice dated 10th February, 2022 under Section 226 of the Act seeking to recover outstanding demand for the Assessment Years 2009-10, 2010-11, 2011-12, 2012-13, 2014-15, 2015-16, 2017-18 & 2018-19 aggregating to Rs. 3,55,89,80,829/-. It was further contended that the Petitioner replied to the notice explaining to the authorities that the demands raised were incorrect and that the Petitioner has filed various letters since 2019 seeking deletion of such erroneous outstanding tax demand and release of consequential refund.

The petitioner also contended that since 2019, they have addressed multiple reminders and representations to the authorities seeking disposal of the rectification applications filed by the Petitioner.

A bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that the Petitioner’s application seeking withholding certificate at a low tax rate has been rejected on the ground that there exists huge outstanding demand on their internal portal.

“However, in the very first paragraph of the impugned order, the Officer takes note of the observation of the PAN Assessing Officer that a number of rectification applications of the assessee are pending and once they are decided, the demand against the assessee is likely to be reduced to NIL. Consequently, this Court finds that the very foundation for rejection of the application filed by the Petitioner under Section 197 is self-contradictory,” the Court said.

Allowing relief to the assessee, the Court held that “Accordingly, this Court set asides the impugned order dated 16th May, 2022 and directs the Respondent No.2 to decide the rectification applications filed by the Petitioner, in accordance with law within six weeks. Needless to state that if any refund is due and payable to the Petitioner, the same shall be refunded not later than eight weeks from today, in accordance with law. This Court clarifies that it has not expressed any opinion on the merit of rectification application.”

Mr. Deepak Chopra with Harpreet Singh Ajmani and Mr. Ankul Goayl, Advocates appeared for the assessee.

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