The Tax Publishers2020 TaxPub(DT) 2745 (Bom-HC) : (2020) 272 TAXMAN 0335 INCOME TAX ACT, 1961
Section 241A
Respective authorities were not justified in withholding the net refundable amount by invoking section 241A as the said section could not be applied to the refund of assessment year 2014-15 or any assessment year prior to 2017-18.
|
Refund - Withholding of refund - Applicability of section 241A -
Respective authorities passed a common order disposing off all the applications for rectification filed by assessee under section 154 and also the notices issued by the respondents under section 245 seeking adjustment of the alleged outstanding dues of assessee against the amount of refund due to assessee. According to the respondents, after adjusting the demand of the respondents against assessee, the net refundable amount payable to assessee was Rs. 833,04,88,000. Respondents however, did not refund any amount to assessee including Rs. 833,04,88,000 which according to the respondents was due and payable to assessee. Assessee thus, filed this petition inter alia praying for various reliefs. Assessee contended that in any event the respondents could not have withheld the said net refundable amount Rs. 833,04,88,000. Held: Respondents could not be allowed to invoke section 241-A for the first time in the affidavit in reply to the writ petition filed by the assessee. Power to withhold the refund granted to AO was subject to the previous approval of the Principal Commissioner or Commissioner, as the case may be and that also would be for every assessment year after 1-4-2017 where refund of any amount became due to assessee under the provisions of sub-section (1) of section 143 and not for the earlier assessment year. The assessment year in question in this case was 2014-15. Section 241A pressed in service even in the affidavit-in-reply or otherwise was not attracted to the refund of assessment year 2014-15 or any assessment year prior to 2017-18. No approval was granted by the Principal Commissioner or Commissioner as the case may be to withhold the refund up to the date on which the assessment was made. In this case, the assessment order under section 143(1) for the assessment year 2014-2015 had already attained finality resulting in refund of amount in view of the judgment delivered by Supreme Court on 29-4-2020 and the Order, dated 28-5-2020 passed by the respondents. Respondents were directed to refund a sum of Rs. 833,04,88,000 to assessee within two weeks from the date of uploading of this order without fail.
REFERRED : Vodafone Idea Ltd. (Earlier Known as Vodafone Mobile Services Limited) v. Asstt. CIT Circle 26 (2) & ANR. 2020 TaxPub(DT) 1811 (SC) M/s. Vodafone Mobile Services Ltd. v. Asst. CIT & Anr. 2018 TaxPub(DT) 7830 (Del-HC) Maruti Suzuki India Ltd. v. Dy. CIT (2012) 347 ITR 43 (Delhi) : 2012 TaxPub(DT) 0741 (Del-HC)
FAVOUR : In assessee's favour
A.Y. : 2014-15
SUBSCRIBE FOR FULL CONTENT
|