Narayanan Chettiar Industries v. The Income-tax Officer, Non-Corporate Ward-12(1), Chennai / The Joint Commissioner of Income-tax Non-Corporate Range 12, Chennai
[Citation -2019-LL-0912-61]

Citation 2019-LL-0912-61
Appellant Name Narayanan Chettiar Industries
Respondent Name The Income-tax Officer, Non-Corporate Ward-12(1), Chennai / The Joint Commissioner of Income-tax Non-Corporate Range 12, Chennai
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 12/09/2019
Assessment Year 1990-91
Judgment View Judgment
Keyword Tags statutory interest • interest payable • excess interest • profit on sale • compensation • excess tax • refund • short-term capital gain • long-term capital gain
Bot Summary: Respondents Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, directing the respondents to refund the amount of Rs.15,18,650/- for the assessment year 1990-1991 and any excess interest collected U/s.220 along with statutory interest U/s.244A of the Income Tax Act, 1961 from the date of determination of the refund, till the date of issue of refund and further, pay compensation for the inordinate delay in granting the refund. 25266 of 2019 For Petitioner : Mrs.Pushpa Sitaraman, Senior Counsel for M/s.J.Sreevidya For Respondents : Mr.J.Narayanasamy standing counsel ORDER The petitioner seeks for a mandamus directing the respondents to refund the amount of Rs.15,18,650/- for the assessment year 1990-1991 and any excess interest collected U/s.220 along with statutory interest U/s.244A of the Income Tax Act, 1961 from the date of determination of the refund, till the date of issue of refund and further, pay compensation for the inordinate delay in granting the refund. Since the demand raised by various orders passed by the Assessing Officer was already recovered and since the demand was considerably reduced, the petitioner requested the first respondent to refund the excess amount. The petitioner filed a further appeal against the giving effect order dated 29.03.2007 before the Commissioner of Income Tax, and the same was allowed in favour of the petitioner vide order dated 26.04.2011. The petitioner seeks for refund of the said sum of Rs.15,18,670/- as the excess tax collected from the petitioner. Since the request of the petitioner for refund of Rs.15,18,670/- was not considered inspite of several reminders, the present writ petition is filed with the relief as stated supra. Considering the above stated facts and circumstances and considering the fact that the above claim made by the petitioner for refund of the sum of Rs.15,18,670/- is not disputed by the respondents and on the other hand, the respondents seek four weeks time to refund the same, this Writ Petition is disposed of, by recording the above stand taken by the respondents, also with further direction to the respondents to refund the said sum of Rs.15,18,670/- along with appropriate interest within a period of four weeks from the date of receipt of a copy of this order.


IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 12.09.2019 CORAM HON'BLE MR. JUSTICE K.RAVICHANDRABAABU W.P.No.25266 of 2019 and WMP. No. 24839 of 2019 M/s.Narayanan Chettiar Industries Rep. by its Partner Mr.Rm.Subramaniyam 14, Davidson Street, Chennai-600 001. ...Petitioner vs. 1. Income Tax Officer Non-Corporate Ward 12(1) Chennai-600 006. 2. Joint Commissioner of Income Tax Non-Corporate Range 12 Room No.215, Wing 2nd Floor, Tower-2 BSNL Building, No.16, Greams Road, Chennai-600 006. ...Respondents Writ Petition filed under Article 226 of Constitution of India praying to issue Writ of Mandamus, directing respondents to refund amount of Rs.15,18,650/- for assessment year 1990-1991 and any excess interest collected U/s.220 along with statutory interest U/s.244A of Income Tax Act, 1961 from date of determination of refund, till date of issue of refund and further, pay compensation for inordinate delay in granting refund. http://www.judis.nic.inPage No. 1/9 W.P.No.25266 of 2019 For Petitioner : Mrs.Pushpa Sitaraman, Senior Counsel for M/s.J.Sreevidya For Respondents : Mr.J.Narayanasamy standing counsel ORDER petitioner seeks for mandamus directing respondents to refund amount of Rs.15,18,650/- for assessment year 1990-1991 and any excess interest collected U/s.220 along with statutory interest U/s.244A of Income Tax Act, 1961 from date of determination of refund, till date of issue of refund and further, pay compensation for inordinate delay in granting refund. 2. case of petitioner, in short, is as follows: For assessment year 1990-1991, assessment was completed under Section 143(3) r/w 147 of Income Tax Act, 1961 (for brevity "the IT Act") and demand was raised for sum of Rs.63,23,528/-. petitioner filed appeal before Commissioner of Income Tax (Appeals), Chennai, who in turn vide order dated 03.02.2000 held that portion of lands are not liable to tax and rest should be assessed as Short Term Capital Gains and thus, remitted matter to Assessing Officer. http://www.judis.nic.inPage No. 2/9 W.P.No.25266 of 2019 petitioner took up matter further by way of appeal to Income Tax Appellate Tribunal, Chennai. Tribunal, vide orders dated 14.05.2001 & 01.10.2001, held that profit on sale of non-agricultural lands should be assessed as Long Term Capital Gains and not Short Term Capital Gains and however, upheld order of Commissioner of Income Tax (Appeals) in remanding matter. Thereafter, first respondent passed order dated 02.12.2002 under Section 143(3) r/w 254 to give effect to order of Tribunal and reduced demand to Rs.40,78,567/-. petitioner challenged same before Commissioner of Income Tax (Appeals), Chennai, who partly allowed appeal, vide order dated 20.12.2006. first respondent passed giving effect order dated 29.03.2007 to order of Commissioner of Income Tax (Appeals), thereby reducing demand to Rs.20,49,872/-. In meantime, first respondent certified arrears of demand including interest for assessment year 1990-1991 to Tax Recovery Officer to recover amounts from petitioner on various dates. Since demand raised by various orders passed by Assessing Officer was already recovered and since demand was considerably reduced, petitioner requested first respondent to refund excess amount. respondent reworked interest under Sections 220 and 224 of IT Act and refunded amount of http://www.judis.nic.inPage No. 3/9 W.P.No.25266 of 2019 Rs.96,90,242/- including statutory interest, thereby reducing demand to Rs.20,49,872/- for assessment year 1990-1991. petitioner filed further appeal against giving effect order dated 29.03.2007 before Commissioner of Income Tax (Appeals), and same was allowed in favour of petitioner vide order dated 26.04.2011. Thereafter, giving effect order dated 08.06.2011 was passed by Assessing Officer to order of Commissioner of Income Tax (Appeals) dated 26.04.2011, wherein demand of Rs.20,49,872/- was reduced to Rs.5,31,202/-. It is stated that no appeal was filed by Revenue against order dated 26.04.2011 passed by Commissioner of Income Tax (Appeals). Therefore, issue attained its finality and Revenue owes amount of Rs.15,18,670/- towards excess tax collected, being difference arising on account of reduced demand together with statutory interest and also excess interest collected under Section 220 of IT Act. Therefore, petitioner seeks for refund of said sum of Rs.15,18,670/- as excess tax collected from petitioner. Since request of petitioner for refund of Rs.15,18,670/- was not considered inspite of several reminders, present writ petition is filed with relief as stated supra. http://www.judis.nic.inPage No. 4/9 W.P.No.25266 of 2019 3. When writ petition was taken up for admission on 04.09.2019, Mr.J.Narayanasamy, learned standing counsel (IT) took notice for respondents and sought time to get instructions. Accordingly, matter is listed today for further hearing. 4. learned standing counsel for respondents today produced communication dated 19.09.2019 issued by Income Tax Officer, Non- Corporate Ward 12(1), Chennai addressed to learned Senior Standing Counsel, Chennai, wherein, it is stated as follows: "On perusal of records of M/s.Narayanan Chettiar (hereinafter called assessee), it is noticed that as much as Rs.96,90,240/- being refund and interest payable thereon for A.Ys.1990-91 and 1992-93 was issued and assessee claims that part of refund for A.Y.1992-93 is yet to be received by it. In this regard, it is pertinent to mention that original records are not available in this case and even reconstructed records contain partial information only. Even consequential orders giving effect to appellate orders containing details of tax credits allowed are not available, which is http://www.judis.nic.inPage No. 5/9 W.P.No.25266 of 2019 crucial to arrive at balance sum to be refunded. In order to mitigate hardship of assessee, request to M/s.Writers Information which is custodian of our old records to trace out any correspondence or copies of orders etc available, if any, and their reply is awaited. Further, assessee will also be requested to provide any other papers relating to impugned issue so that necessary action can be taken up without further loss of time. In this regard, it is assured that assessee would be paid refund due to it along with necessary interest at earliest after obtaining relevant information either from assessee or from M/s.Writers Information. In view of above, it is requested that Hon'ble Court may be pleased to not to take any adverse view and grant time of four weeks to attend to grievance of assessee on priority basis." 5. By citing above written instructions, learned standing counsel for respondents submitted that request of petitioner for refund of sum of Rs.15,18,670/- will be considered and amount will be refunded to petitioner within period of four weeks. http://www.judis.nic.inPage No. 6/9 W.P.No.25266 of 2019 6. Considering above stated facts and circumstances and considering fact that above claim made by petitioner for refund of sum of Rs.15,18,670/- is not disputed by respondents and on other hand, respondents seek four weeks time to refund same, this Writ Petition is disposed of, by recording above stand taken by respondents, also with further direction to respondents to refund said sum of Rs.15,18,670/- along with appropriate interest within period of four weeks from date of receipt of copy of this order. No costs. Consequently, connected miscellaneous petition is closed. 12.09.2019 Speaking/Non-speaking order Index: Yes/No Internet : Yes/No mk To 1. Income Tax Officer Non-Corporate Ward 12(1) Chennai-600 006. 2. Joint Commissioner of Income Tax Non-Corporate Range 12 Room No.215, Wing 2nd Floor, Tower-2 http://www.judis.nic.inPage No. 7/9 W.P.No.25266 of 2019 BSNL Building, No.16, Greams Road, Chennai-600 006. K.RAVICHANDRABAABU,J. mk W.P.No.25266 of 2019 http://www.judis.nic.inPage No. 8/9 W.P.No.25266 of 2019 12.09.2019 http://www.judis.nic.inPage No. 9/9 Narayanan Chettiar Industries v. Income-tax Officer, Non-Corporate Ward-12(1), Chennai / Joint Commissioner of Income-tax Non-Corporate Range 12, Chennai
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