Kouts And Mr.akshay Bhatia v. Assistant Commissioner Of Income Tax Circle 28(1) & Ors

$~S-55 IN THE HIGH COURT OF DELHI AT NEW DELHI+W.P.(C) 13453/2021 & CM APPLs. 42385-386/2021M/S AFFLATUS INTERNATIONAL..... PetitionerM/S AFFLATUS INTERNATIONAL..... Petitioner versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 28(1)& ORS...... RespondentsThrough:Mr.S.C.Pratyaksh Gupta, Advocatefor R-1to3. %Date of Decision: 29[th]November, 2021 CORAM:HON'BLE MR. JUSTICE MANMOHANHON'BLE MR. JUSTICE NAVIN CHAWLAO R D E R29.11.2021 % MANMOHAN, J. (Oral) 1.Present writ petition has been filed by the Petitioner seeking adirection to the Respondents to refund the excess tax collected amounting toRs.1,43,23,653/- for the Assessment Year 2020-21 and Rs. 53,85,886/- forthe Assessment Year 2018-19 forthwith 2.Learned counsel for the Petitioner states that the Respondents havearbitrarily recovered 100% of the high-pitched disputed tax demand raisedagainst the Petitioner for Assessment Year 2017-18 in an assessment framedunder Section 143(3) of the Act from the Refund(s) under Section 143(1) in W.P.(C) 13453/2021 subsequent years i.e. Rs.1,43,23,653/- for Assessment Year 2020-21 andRs.53,85,886/- for Assessment Year 2018-19. He states that this was donedespite an application seeking stay of recovery of demand being made bythe Petitioner in the pending appeal before the CIT(A). He also states thatthe adjustment was initiated without adhering to the mandatory requirementof issuance of notice to the Petitioner before an adjustment of refund underSection 245 of the Income Tax Act, 1961. 3.Learned counsel for the Petitioner points out that the recovery of theentire additional demand for Assessment Year 2017-18 against refunds ofyears 2020-2021 and 2018-19 is contrary to CBDT office memorandumdated 31st July 2017 which directs stay on recovery of demand upon depositof 20% of the outstanding demand where an appeal is pending before theCIT(A). 4.Issue notice. Mr.SC Praty, learned counsel for respondents acceptsnotice. He, on instructions, states that the amount adjusted in excess of 20%demand in accordance with the CBDT Office Memorandum dated 31st July,2017 shall be refunded to the petitioner within eight weeks. 5.Thestatement/undertaking given by learnedcounselforrespondents is accepted by this Court and the respondents are held bound bythe same. In view thereof, the present writ petition along with pendingapplications stands disposed of as satisfied. MANMOHAN, J NOVEMBER 29, 2021/TS NAVIN CHAWLA, J