M/S MITSUI ENGINEEGIN & SHIP.C vs THE ASST. DIRECTOR OF INCOME T

Judgment text excerpt

$~64 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 23rd February, 2026 + W.P.(C) 6708/2005 M/S MITSUI ENGINEEGIN & SHIP.C .....Petitioner Through: Mr. Rajiv Tyagi, Adv. versus THE ASST. DIRECTOR OF INCOME T .....Respondent Through: Mr. Siddhartha Sinha, SSC with Ms. Easha Gurung, JSC. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT DINESH MEHTA, J. (ORAL) 1. By way of the instant writ petition, the petitioner has challenged the order of the Director of Income Tax, International Taxation, New Delhi dated 20.01.2005 whereby petitioner’s application under Section 154 of the Income Tax Act for additional interest under Section 244(1A) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act of 1961’) has been dismissed. 2. Learned counsel for the petitioner submitted that the reasoning of impugned order rejecting the petitioner’s application for interest was based upon the judgment of Bombay High Court rendered in the case of Sandvik Asia Ltd v. Commissioner of Income Tax-1 reported in (2004) 267 ITR 78 Signature Not Verified Digitally Signed By:NAVEEN KUMAR Signing Date:27.02.2026 W.P.(C) 6708/2005 Page 1 of 3 11:14:38 (Bom), which judgment and the same has been reversed by Hon’ble the Supreme Court vide the judgment dated 27.01.2006 reported in [2006] 280 ITR 643 (SC). 3. Having heard learned counsel for the parties and considering the fact that the judgment passed by the Bombay High Court in the case of Sandvik Asia (supra) has been upturned, we are persuaded to allow the present writ petition. 4. The present writ petition is allowed in light of the judgment of Hon’ble the Supreme Court rendered in Sandvik Asia Ltd v. Commissioner of Income Tax-1. The order dated 20.01.2005 passed by the Director of Income Tax, Int