High Court Employees Co. operative Credit Society Limited vs Income Tax Officer Ward 17(3)(1), Mumbai — Bombay HC (2026) — LawSathi Research

High Court Employees Co. operative Credit Society Limited vs Income Tax Officer Ward 17(3)(1), Mumbai — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Rule made absolute in the aforesaid terms: Respondent No.1 and Respondent No.2 (CPC, Bengaluru) to process the refund of Rs.10,53,892/- along with applicable interest till the date of payment, within 8 weeks; no order as to costs; compliance to be reported with the petition placed on board on 16 April 2026.

Issue for consideration

Whether the Respondents wrongfully adjusted the Petitioner's refunds relating to A.Y.2015-16 and A.Y.2018-19 against an alleged non-existent demand for A.Y.2003-04, and whether the refund (subsequently computed at Rs.10,53,892/- following the Section 154 Rectification Order) should be processed and paid to the Petitioner with applicable interest.

Court's answer

Since it is an admitted position that, as per the Rectification Order [passed under Section 154 of the Act], the refund of Rs.10,53,892/- is payable to the Petitioner, the Court directed Respondent No.1 and Respondent No.2 (CPC, Bengaluru) to process the said refund along with applicable interest till the date of payment.

Ratio / Principle

The refund was to be processed as expeditiously as possible and in any event within a period of 8 weeks from the date of the order.

Detailed headnote1 paragraphs

Bombay High Court (O.O.C.J.), Writ Petition No.4822 of 2025 (decided 17 February 2026): High Court Employees Co-operative Credit Society Limited v. Income Tax Officer, Ward-17(3)(1), Mumbai & Ors. The Petitioner had challenged the wrongful adjustment of its refunds relating to A.Y.2015-16 and A.Y.2018-19 against an alleged non-existent demand for A.Y.2003-04. During the pendency of the Petition, Respondent No.1 passed a Rectification Order under Section 154 of the Act on 19 December 2025 deleting the A.Y.2003-04 demand, rendering prayer clause (a) infructuous, and computed the refund payable at Rs.10,53,892/-, a position not disputed by the Respondents. On this admitted position, the Court (Pooniwalla, J.; Colabawalla, J. on the bench) directed Respondent No.1 and Respondent No.2 (CPC, Bengaluru) to process the refund along with applicable interest till the date of payment, as expeditiously as possible and in any event within 8 weeks. Rule was made absolute and the Writ Petition disposed of with no order as to costs; the Petition was placed on board for reporting compliance on 16 April 2026.

65.wp.4822.2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION NO.4822 OF 2025

High Court Employees Co-operative Credit Society Limited

.. Petitioner

Versus

Digitally signed by UTKARSH UTKARSH KAKASAHEB KAKASAHEB BHALERAO BHALERAO Date: 2026.02.18 19:38:40 +0530

Income Tax Officer, Ward-17(3)(1), Mumbai & Ors.

.. Respondents

Mr.Sham Walve a/w Tanzil Padvekar, Bhavik Chheda, Rama B. Waghmare, Advocates for the Petitioner.

Mr.Ravi Rattesar, Advocate for the Respondents.

CORAM : B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE : FEBRUARY 17, 2026

FIRDOSH P. POONIWALLA, JJ.

P. C.

1. Mentioned. With the consent of parties, taken out of turn.

2. Rule. Respondents waive service. With the consent of

parties, Rule made returnable forthwith, and heard finally.

3. The present Petition has been filed challenging the action of

wrongful adjustment of refund(s) relating to A.Y.2015-16 and A.Y.2018-

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19 by the Respondents against an alleged non-existent demand for A.Y.2003-04.

4. At the outset, Mr.Walve, the learned counsel appearing for the Petitioner submits that subsequent to the filing of the present Writ Petition, Respondent No.1 has passed a Rectification Order under Section 154 of the Act on 19^th December 2025, whereby the demand for A.Y.2003-04 has been deleted. Therefore, prayer clause (a) of the present Writ Petition has now become infructuous.

5. Mr.Walve further states that consequent to the Rectification Order passed under Section 154 of the Act, Respondent No.1 has computed the refund payable at Rs.10,53,892/-. This position is not disputed by the Respondents, namely that a refund of Rs.10,53,892/- is payable to the Petitioner.

6. Since it is an admitted position that as per the Rectification Order [passed under Section 154 of the Act], the said amount is payable to the Petitioner, we direct Respondent No.1 and Respondent No.2 (CPC, Bengaluru) to process the said refund along with applicable

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interest till the date of payment, as expeditiously as possible and in any event within a period of 8 weeks from today.

7. Rule is made absolute in the aforesaid terms, and the Writ Petition is also disposed of in terms thereof. However, there shall be no order as to costs.

8. Though we have disposed of the above Writ Petition, we now place it on board for reporting compliance on 16^th April 2026.

9. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.

[FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.]

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