INCOME TAX ACT, 1961

Article 226 Section 241A

Writ - Withholding of refund under section 241A - No order for withholding of refund -

Present petition was filed seeking a direction to authority to refund the amount as per intimation for assessment year 2018-19 issued under section 143(1) along with interest. Petitioner submitted that despite issuance of scrutiny Notice under section 143(2) in terms of the procedure prescribed under section 143, refund due to the petitioner was liable to be released at the time of issuance of the intimation order under section 143(1). He contended that neither any order was passed under section 241A nor any reasons had been communicated for withholding of refund to petitioner. Held: Despite issuance of scrutiny notice under section 143(2), refund due to petitioner was liable to be released at the time of issuance of the intimation/order under section 143(1) unless an order for withholding of refund has been passed under section 241A. If any order had been passed under section 241A, this Court was of the view that authority had sufficient time to produce the same. In response to the petitioner's grievance application seeking release of refund, AO stated that “Needful action was taken by this office as per communication received from the CPC.” To obviate any mischief and as petitioner's refund was withheld for nearly ten months, the Court directed the concerned AO to be personally present via video link with all the relevant papers of the assessee. Registry was directed to list the matter on 15-9-2020.

Followed:Ericsson India Pvt. Ltd. v. Addl. CIT & Anr. [W.P.(C) 10373/2019 dated 18-2-2020] : 2020 TaxPub(DT) 1599 (Del-HC) Maple Logistics Pvt. Ltd. & Anr. v. PCCIT & Ors. 2019 SCC OnLine Del 10961 : 2019 TaxPub(DT) 7384 (Del-HC)

REFERRED :

FAVOUR : Petition to be listed

A.Y. :

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