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| The Tax Publishers2020 TaxPub(DT) 2974 (Del-HC) : (2020) 315 CTR 0900 : (2020) 273 TAXMAN 0216 INCOME TAX ACT, 1961
Section 241A
Since exercise of withholding of refund under section 241A pursuant to notice under section 143(2) without recording justifiable reasons, was not in consonance with legislative intent and mandate of aforesaid provision, matter was remanded back to determine as to whether amount found due to be refunded, was liable to be withheld under section 241A.
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Refund - Withholding of refund under section 241A - Validity - Non-recording of reasons
Assessee-company was providing hospital services to general public. It filed its return of income for relevant assessment year claiming refund on account of excess deduction of tax at source. Revenue selected the case of the petitioner for limited scrutiny under section 143(2) and subsequently, CPC (Centralised Processing Centre) processed return of income, under section 143(1), resulting in refund. However, said refund was not granted and thereafter assessee was informed that refund was withheld under section 241A. Held: Exercise of withholding of refund under section 241A pursuant to notice under section 143(2) without recording justifiable reasons, was not in consonance with legislative intent and mandate of aforesaid provision. Reasons cited did not support finding that refund would adversely affect revenue. Three weeks' time was granted to revenue to re-consider aspect whether amount found due to be refunded, or any part thereof, was liable to be withheld under section 241A.
Followed:Ericsson India Private Limited v. Addl. CIT & Anr. [MANU/DE/0763/2020] : 2020 TaxPub(DT) 1599 (Del-HC) Maple Logistics Private Limited & Anr. v. PCCIT & Ors. 2019 SCC OnLine Del 10961 : 2019 TaxPub(DT) 7383 (Del-HC)
REFERRED :
FAVOUR : Matter remanded
A.Y. : 2018-19
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