Ericsson India to get Rs 349 crore tax refund

In a relief for Ericsson India, the Delhi High Court has directed the income-tax department to release a refund of ₹349 crore. The 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 earlier approached the court with a similar grievance, which was regarding I-T refunds for Assessment Years 2016-17, 2017-18 and 2018-19.

The court had then 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. After the court order, the department refunded ₹561.72 crore, including interest till May 2020, in respect of AY 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 ₹500 crore in AY 2018-19, and, therefore, refund sought of ₹349 crore be denied.