Bombay HC asks I-T dept to refund Rs 833 crore to Vodafone Idea within two weeks

The Bombay excessive court docket (HC) final Friday directed the revenue tax (I-T) division to refund Rs 833 crore to Vodafone Idea Limited inside two weeks whereas upholding the telco’s plea.

Earlier, Vodafone Idea had filed a petition in search of a route to the I-T division to refund Rs 1009.43 crore, together with Rs 833 crore on a direct foundation because the undisputed quantity, whereas citing the tax authorities’ rectification order issued on May 28.

The plea acknowledged that the telco had filed its I-T returns in September 2014 and subsequently revised it twice in March 2016 and February 2017.

On October 31, 2019, an assistant commissioner of I-T had handed an evaluation order, figuring out the refund of Rs 733.80 crore to the corporate.

Vodafone Idea, nevertheless, sought rectification of the evaluation, which led to litigation that was determined by the Supreme Court on April 29.

The I-T division issued its rectification order on May 28 following the SC order. The I-T authorities accepted that the telco was entitled to a refund of Rs 1009.43 crore for the evaluation 12 months 2014-15.

The assessing officer, nevertheless, deducted Rs 176.39 crore as pending dues and settled for the web refund of Rs 833 crore.

On June 11, the corporate wrote to the principal commissioner of I-T and sought the refund of Rs 1009.43 crore, citing its May 28 order, adopted it up with a number of reminders, after which moved the HC after it didn’t get any response from the authorities involved.

The plea contended that the division was certain to launch the refund quantity, as there isn’t a provision beneath the I-T Act, 1961, allowing withholding the mentioned quantity after orders have been handed figuring out the refund.

I-T division responded to the plea, arguing that withholding the refund was justified as huge excellent dues are but to be settled by the petitioner.

It cited Section 241A of the I-T Act, 1961, which empowers the authorities involved to withhold the refund.

However, a two-member division bench, comprising Justice RD Dhanuka and Madhav Jamdar, refused to simply accept the I-T authorities’ argument.

It acknowledged that the division’s May 28 order is binding and the one matter that remained to be adjudicated was whether or not the assessing officer is empowered to regulate Rs 176.39 crore from the agreed refund sum.

The bench noticed that I-T authorities don’t have any energy to withhold refunds towards undetermined future calls for.