INCOME TAX ACT, 1961

Section 237

Refund - Withholding of - Refund claim not released on account of computer glitch at Central Processing Center -

Assessee suffered sizeable deduction of tax at source and during assessment, refund of Rs. 224.28 crores arose. Department raised issue that assessee had pending demands for other assessment years. Department stated that assessee's refund claim had not been released on account of computer glitch at Central Processing Center presumably for reason that system was not accepting stay of demands so far made for other years Held: There was no reason as to why assessee should not get the refund which flows from the order of the assessment. Department did not dispute that demands for other assessment years of assessee were presently not enforceable. Refund of assessee arising out of the order of assessment for the said assessment year 2014-15 could not be withheld, that too on the ground of technical difficulty of the system not accepting such a declaration of stay of the demands and giving effect to such position. Computer system and auto-generation or any difficulty in doing so in a particular case, could not override the correct legal position

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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