The Tax Publishers2020 TaxPub(DT) 3045 (Del-HC)

INCOME TAX ACT, 1961

Section 241A read with Section 143(3)

Where assessee contended that AO could not withhold refund once an order under section 143(3) was passed and scrutiny assessment was concluded, withholding of refund prima facie appeared to be without any justification and competent authority was directed to refund amounts along with interest to assessee within stipulated period.

Refunds - Withholding of refund - Refund, whether rightly withheld when scrutiny assessment already concluded under section 143(3) -

Assessee contended that AO withheld refund due without any reason and/or explanation. Case of assessee was that under section 241A, AO can pass an order withholding grant of refund only up to date on which assessment is made, i.e., during the pendency of scrutiny assessment. Thus, according to assessee, AO could not withhold refund once an order under section 143(3) was passed and scrutiny assessment was concluded. Held: Notice was issued. In similar circumstances in Fis Payment Solutions & Services India Pvt. Ltd, it was observed that withholding of refund prima facie appeared to be without any justification. Competent authority was directed to refund amounts for assessment year along with interest as applicable, to assessee within six weeks. In case revenue had any valid justification for withholding refund, or any part thereof, they shall file their counter affidavits positively within same period clearly stating as to why refund/partial refund was not due. No further time shall be granted for said purpose.

Followed:Fis Payment Solutions & Services India Private Limited v. DCIT & ANR. [W.P.(C) 2162/2020, vide Order, dated 3-3-2020]

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2017-18



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