Delhi High Court Raps Income Tax Dept For Over Two-Year Delay In Implementing ITAT Order; Directs Refund With Interest Within One Month

The Delhi High Court recently criticized the Income Tax Department for an over 2-year delay in implementing an ITAT order, directing it to reconsider the demand raised against an assessee.A division bench of Justices Prathiba M. Singh and aShail Jain observed that the Income Tax Department must implement judicial orders with “alacrity” however in this case, it woke up only after the assessee moved the High Court to seek enforcement of the ITAT order passed back in January 2023.“The Court notes with some consternation that it is only after the writ petition has been filed, that the Income Tax Department has got activated, and have issued notice to the Petitioner…It is pertinent to note that the entire period after the ITAT order was passed in January, 2023, no action has been taken by the Income Tax Department…Despite reminders being given by the Petitioner, the Income Tax Department has failed to take any action,” it observed.The petitioner's income tax returns for the Assessment Year 2016-2017 were scrutinized under Section 143(3) of the Income Tax Act, 1961 and thereafter, an Assessment order was passed raising a demand of Rs 33,64,160/-.While the Petitioner deposited the said amount, his appeal against the said demand was partially allowed and ITAT directed the Assessing Authority to conduct a fresh assessment within nine months. As the Assessing Authority failed to do so, Petitioner filed this writ. Around the same time, the Department issued notice to the Petitioner for the computation of the amounts and subsequently passed an order for refund of the amount so deposited.Petitioner contended that as per Section 244 (1A), he is entitled to receive the said amount, including interest @3%, for the delayed period.Agreeing, the High Court ordered a refund along with interest within one month, failing which the concerned official of the Income Tax Department shall remain present in the Court, on the next date of hearing.Appearance: Mr. Nagesh Kumar Behl, Adv for Petitioner; Mr. Sidharth Sinha, Adv for RespondentCase title: Santosh Kumar Suri v. Deputy Commissioner Of Income TaxCitation: 2025 LiveLaw (Del) 1485Case no.: W.P.(C) 15373/2025 Click here to read order

Delhi High Court Raps Income Tax Dept For Over Two-Year Delay In Implementing ITAT Order; Directs Refund With Interest Within One Month

Kapil Dhyani

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