Delhi High Court Directs CPC To Determine And Process Refund Due To LG Under A Rectification Order

LG had opted to be taxed under Section 115BAA of the Act, attracting a tax rate of 22%, yet the revenue authorities applied a tax rate of 25% under Section 115BA of the Act. LG filed a writ petition in the High Court, challenging the intimation issued under Section 143(1) of the Act as well as seeking a direction to the revenue authorities to dispose of its rectification application under Section 154 of the Act seeking rectification of the impugned intimation.

Sections 115BA and 115BAA give an option to an assessee, being a domestic company, to be governed by either of the said provisions, attracting a tax rate of 25% or 22 % respectively, on satisfying certain conditions under the said provisions. Section 154 gives the specified income tax authority the power to amend any order passed by it under the Act or any intimation issued under Section 143(1) of the Act in order to rectify any mistake apparent from the record.

The counsel for the revenue authorities submitted that though the rectification of intimation under Section 143(1) has been carried out, due to some technical reasons the accounting of rectification order under Section 154 could not be completed at the Central Processing Center (CPC).

The court directed the CPC to determine and process the refund due to LG in accordance with the law.

Case Title: M/S. LG Electronics India Private Limited Versus Deputy Commissioner Of Income Tax

Citation: 2022 LiveLaw (Del) 170

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