IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE ALEXANDER THOMAS TUESDAY, 04TH DAY OF FEBRUARY 2020 15TH MAGHA, 1941 WP(C).No.26588 OF 2019(W) PETITIONER: UNITAC ENERGY SOLUTIONS(INDIA)PVT.LTD. 2ND FLOOR, UNITAC ARCADE, OPPOSITE DECATHALON, N.H.BYPASS, THYKOODAM, VYTTILA, KOCHI-682019. BY ADV. SMT.NISHA JOHN RESPONDENTS: 1 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KOCHI, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI-682018. 2019 2 JOINT/ADDITIONAL COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2(1), KOCHI, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI-682018. 3 ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2(1), KOCHI, 3RD FLOOR, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI-682018. 4 ADDL.R4- CENTRALISED PROCESSING CENTRE, INCOME TAX DEPARTMENT, BANGLORE-560 500,REPRESENTED BY DEPUTY COMMISSIONER OF INCOME TAX, CPC.(ADDL.R4 IS IMPLEADED AS PER ORDER DATED 26.11.2019 IN IA.2/2019 IN WP(C)) R1-3 BY ADV. SRI.P.K.RAVINDRANATHA MENON (SR.) R1-3 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.02.2020, COURT ON SAME DAY DELIVERED FOLLOWING: WP(C).No.26588 OF 2019(W) 2 ALEXANDER THOMAS, J WP(c) NO. 26588/2019 Dated this 4th day of February 2020 JUDGMENT factual aspects broadly stated in this writ petition are as follows: That petitioner company is aggrieved by non-disbursal of refund for A.Y. 2017-18 in terms of Ext.P1 intimation under section 143(1) of Act. Petitioner is also seeking for direction to process return for A.Y. 2018-19. Revenues failure to grant refund has resulted in blocking of working capital of petitioner company and has caused grave financial hardship. aggregate of eligible refunds if A.Y. 2019-20 is also included, would come to around Rs.8 crores. If legitimate refunds continue to be held back and processing of return and consequent issuance of refunds are delayed, petitioner company cannot survive due to lack of working capital. Hence aggrieved by failure of respondents to issue refund for A.Y. 2017-18 and to process return for A.Y. 2018- 19, this writ petition is filed with following prayers. (a) To issue writ of mandamus or any other appropriate writ, order or direction directing respondents to issue refund due to petitioner in terms of Ext.P1 for AY 2017-2018. (b) to issue writ o f mandamus or any other appropriate writ, order or direction directing respondents to process return for WP(C).No.26588 OF 2019(W) 3 A.Y. 2018-19 and issue refund due to petitioner without delay. 2. Heard Smt. Nisha John, learned counsel appearing for petitioners and Sri. Jose Joseph, learned standing counsel for Income Tax Department, Government of India, appearing for all respondents. 3. respondents have initially filed statement dated 30/11/2019 in this case. Later, Sri. Jose Joseph, learned standing counsel for Income Tax Department, Government of India appearing for respondents have submitted that there are some crucial subsequent developments in this case which has occurred after filing of statement on 30/11/2019 and that additional statement in that regard is being filed. Accordingly, it is seen that additional statement dated 27/01/2020 has been filed on behalf of respondent before this Court on 29/01/2020. Smt. Nisha John, learned counsel appearing for petitioner has made submissions mainly in tune with pleadings in WP(c) as well as reply affidavit to first statement. 4. From submissions made on behalf of respondents, it appears that facts stated in this case are in relation to two assessment years for petitioner assessee, viz, assessment years 2017-18 and subsequent assessment year, 2018-19. According to respondents, assessment under Section 142(3) for assessment year 2017-18 in this WP(C).No.26588 OF 2019(W) 4 case was duly completed on 27/12/2020 and that, refund of amount to tune of Rs.2,73,03,515/- was duly ordered. Further that, adjustment in that regard was made by competent authority of respondent under Section 245 of Income Tax Act, whereby balance refund due to petitioner to tune of Rs.1,20,67,181/- for assessment year 2017-18 and that proceedings are issued, directing said balance refund amount to be duly released to petitioner as per proceedings issued on 30/01/2020. Further it is stated by learned standing counsel for respondents that steps are to be taken to ensure that said refund amount of Rs.1,20,67,181/- is duly credited to bank account of petitioner through electronic means without much delay and it is expected that process will be completed within week or so. 5. Further it is pointed out that for assessment year 2018-19, demand was to tune of Rs.1,52,36,334/-, demand including interest as brought out in intimation under Section 143(1) for said assessment year 2018-19 comes to Rs.1,52,36,334/-. Further it is pointed out that for assessment year 2018-19, petitioner has filed rectification application u/s 154 of IT Act, which has now been received by respondent on 27/01/2020. It is pointed out that under provisions contained in Section 154(8) of IT Act, Assessment Officer has time limit up to period of 6 months from date of receipt of WP(C).No.26588 OF 2019(W) 5 application to consider and dispose off same. It is pointed out that main issue raised in rectification application is that due to some apparent problems in TDS amounts, due credit was not given and that plea of petitioner is that if those technical issues are dealt with, then petitioner is legally entitled to secure benefit of those TDS credits and therefore, petitioner is entitled for refund of amount to tune of Rs.3,34,63,050/-. 6. Having regard to facts and circumstances of this case, it is ordered that Assessment Officer concerned, viz, 3 rd respondent- Assistant Commissioner of Income Tax, who is assessing officer concerned, may take all reasonable endeavors possible under these circumstances to ensure that plea made by petitioner in above said rectification application filed under section 154 of IT Act, for assessment years 2018-19 may be taken up without any further delay, and after affording reasonable opportunity of being heard to petitioner, through authorized officials or counsel if any, will take considered decision thereon and also take into consideration, plea of petitioner that petitioner is legally entitled for securing benefit of claim for TDS credit as afore stated without much delay, going by case of petitioner, that amounts involved in TDS problems are rectified, which comes to tune of more than Rs.3.34 crores, and also taking into WP(C).No.26588 OF 2019(W) 6 account, extreme fragility of liquidity issues now being faced by petitioner concerned. 3 rd respondent may take pro-active approach and may understand fiscal and business problems now faced by petitioner assessee and may pass orders on said rectification application for assessment year 2018-19 within 3 to 4 weeks from date of production of certified copy of this judgment. This Court would observe that ordinarily, such time limit may be short for decision making process, but having regard to above said crucial issues and also fact that petitioner has been waiting for refund for quiet long time and also taking into account, extremely precarious nature of cash liquidity issues now faced by petitioner's business concern, it is hoped and expected that 3rd respondent would rise to occasion and would take necessary steps to meet said time deadline, in interest of justice and fairness. 7. It is further ordered that in case, if petitioner has case that any of facts and figures mentioned herein above does not reflect correct factual position, then certainly it is open to petitioner to seek redressal of such grievances by filing appropriate representation before competent authority concerned of Income Tax Department, without any further delay, and if so filed, said competent authority would examine those grievances of petitioner as well and render considered WP(C).No.26588 OF 2019(W) 7 decision thereon after affording reasonable opportunity of being heard to petitioner. With these observations and directions, above Writ Petition (Civil) stands finally disposed of. Sd/- ALEXANDER THOMAS Nsd JUDGE true copy PA to Judge WP(C).No.26588 OF 2019(W) 8 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF RELEVANT PAGES OF INTIMATION U/S.143(1) DATED 30.03.2019 FOR A.Y.2017-18. EXHIBIT P2 TRUE COPY OF TAX RETURN ACKNOWLEDGMENT FOR A.Y.2018-19. Unitac Energy Solutions (India) Pvt. Ltd. v. Pr. Chief CIT, Kochi / Joint/Addl. CIT, Corporate Circle-2(1), Kochi / ACIT, Corporate Circle-2(1), Kochi / Addl. R4-Centralised Processing Centre