I have two H1B petitions processed this year, One from current company and other from new employer. My H1B petition from new employer was denied by USCIS. H1B petition from current employer is approved. In DS 160 form there is a question "Have you ever been refused a US Visa,been refused admission to the United states or withdrawn your application for aadmission at port of entry ? " Can you please help me in answering this question.
The H1B visa was denied.
I think you know the answer already and are seeking confirmation.
No, from your facts, you haven't had a visa denied.
A prospective employer had THEIR PETITION denied.
With that said, don't submit this until you talk to your current company's immigration lawyer, not a non-attorney in HR.
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You should talk to the company's attorney, but the answer is most like "no." You haven't had a visa denied; the prospective employer has had a petition denied.
This is not legal advice and no attorney-client relationship has been formed, now or in the future. This is just a casual opinion expressed about a hypothetical situation.