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Time limit to pass the rectification order in terms of Section 154(8) of the Income Tax Act, 1961 is six months: High Court of Delhi

Present writ petition has been filed seeking direction to the Respondents to decide the rectification application filed by the petitioner under Section 154 of the Income Tax Act, 1961 upheld by High Court of Delhi through the learned HON’BLE MR. JUSTICE MANMOHAN and HON’BLE MR. JUSTICE NAVING CHAWLA in the case of NOKIA INDIA PRIVATE. LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 16(1), & ORS. (W.P.(C) 3145/2022 & CM APPL.9154/2022) on 21st February, 2022.

Brief facts of the case are that the Petitioner states, Respondents have committed certain errors in granting credit and calculating interest under Section 234B and Section 244A of the Act in its remand Order dated 30th June, 2021. Learned counsel for the petitioner further pleads that writ petition has been filed seeking direction to the Respondents to decide the rectification application dated 8 : th July, 2021 filed under Section 154 of the Income Tax Act, 1961 (‘the Act’) by way of a speaking order as well as grant consequential refund along with the applicable interest under Section 244A of the Act. The petitioner also seeks a direction to the respondents to refund Rs.58,20,32,660/- adjusted under Section 245 of the Act against the outstanding demand of the assessment year 2014-15.

Learned senior counsel for the Petitioner further states that the rectification application dated 8 July, 2021 has not been decided by the respondents till date despite several reminders and time limit to pass the rectification order in terms of Section 154(8) of the Act has expired on 31 July, 2021.

Ms.Vibhooti Malhotra, learned counsel for the respondents, accepts notice and prays for some time to obtain instructions.

Court disposes the present writ petition and application with a direction to the concerned respondent to decide the petitioner’s rectification application dated 8th July, 2021 filed under Section 154 of the Act in accordance with law by way of a reasoned order within six weeks. In the event of refund, if any, the same shall be granted to the petitioner with applicable interest within the aforesaid period.

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Judgment reviewed by – Amit Singh

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