The Delhi High Court has directed the income-tax department to release a refund of Rs 3.49 billion to Ericsson India.
This refund pertains to Assessment Year 2018-19. The court set aside an order by the income tax department to withhold the refund to the company under Section 241A of the Income Tax Act. The court noted that the company had approached the court with a similar grievance, which was regarding I-T refunds for Assessment Years 2016-17, 2017-18 and 2018-19.
Thereafter, the court had asked the tax department to give a detailed reason for withholding the tax and issue the refund in six weeks, failing which it would be liable to pay interest. To this end, the department refunded Rs 5.61 billion, including interest till May 2020, in respect of Assessment Year 2017-18.
However, a fresh order was passed by the assessing officer, saying the company may have to bear tax liability in the range of Rs 5 billion in Assessment Year 2018-19, and, therefore, refund sought of Rs 3.49 billion be denied.
