March 2023
Refund — Tax deposited by the assessee in compliance with order of Tribunal — Fresh assessment not made and becoming time-barred — Assessee entitled to refund of amount with statutory interest deducting admitted tax liability
By K. B. Bhujle, Advocate
Reading Time 2 mins
84 BMW India Pvt Ltd vs. Dy. CIT
[2023] 450 ITR 695 (P&H)
A. Y.: 2009-10
Date of order: 5th July, 2022
Section 237 of ITA 1961
Refund — Tax deposited by the assessee in compliance with order of Tribunal — Fresh assessment not made and becoming time-barred — Assessee entitled to refund of amount with statutory interest deducting admitted tax liability
For the A.Y. 2009-10, the assessee filed an appeal before the Tribunal against the order under section 143(3) of the Income-tax Act, 1961. The Tribunal stayed the order subject to the condition that the assessee deposited an amount of Rs. 10 crores in two instalments and remanded the matter back for fresh assessment. The assessee complied with the order and deposited the amount. The issue with respect to the depreciation amount disallowed was not raised and was conceded by the assessee. According to the remand order dated 21st February, 2014 the authorities were required to pass fresh order before 31st March, 2017.
The assessee filed a writ petition claiming refund of Rs. 10 crores after deduction of tax liability on the admitted depreciation disallowance on the ground that the assessment proceedings had become time-barred. The Punjab and Haryana High Court allowed the writ petition and held as under:
“The assessee was entitled to refund of the excess amount deposited b
