A Division Bench of the Delhi High Court directed to dispose of Rectification Application within 4 weeks and observed that “Repeated representations to AO and grievances sought cannot explain delay of 7 years”.
The petitioner, Intertek India Private Limited, was aggrieved by the fact that its rectification application dated 25.05.2016 has not been disposed of, as yet. The timeline fixed under sections 154(a) and 154(8) of the Income Tax Act, 1961 [“the Act”], is six (6) months. The period involved goes way beyond the statutory timeline fixed for the disposal of a rectification application. This is also the position as per Instruction No.1 of 2016 dated 15.02.2016.
The petitioner made the prayer to issue a Writ of mandamus, or a Writ in the nature of mandamus, or any other appropriate Writ or Order directing the Respondent to dispose of Petitioner’s Rectification Application dated 25.05.2016 within a period of four weeks and grant consequential refund along with applicable interest under Section 244A of the Income Tax Act within the said four weeks.
The Court of Justices Rajiv Shakdher and Girish Kathpalia observed that “That said, we find it difficult to understand why the petitioner did not approach the Court within a reasonable period. Repeated representations to the Assessing Officer (AO) and grievances sought cannot explain, in our view, the delay and laches in approaching the Court. The period involved is more than seven (7) years.”
The Court made the following direction that “The concerned officer will dispose of the rectification application within four (4) weeks of receipt of a copy of the judgment.”
The Court also directed the AO to bear in mind that the first representation to the respondent was made on 09.10.2019 and opined that the interest between the period after the expiry of six (6) months from when the rectification application was filed and 09.10.2019 in the facts of this case, ought not to be paid to the petitioner.
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