Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be discontinued on 31-07-2025
If you encounter any issues or problems while using the new portal,
please
let us know via our feedback form
so we can address them promptly.
Home
2020 (3) TMI 606 - HC - Income TaxWithholding the refund u/s 241A - Approval granted by the Pr.CIT - claim for refund could not be issued on account of the fact that there was an order passed against Petitioner u/s 241A - refund is primarily on account of issuance of tax deduction (TDS) certificates at considerably higher rate of 5% in comparison to Petitioner s request of 3.12%. - HELD THAT - The refund of amounts claimed where they appear justified by itself cannot be said to be adverse to the interest of the revenue. The interest of revenue lies in collecting revenue in a legal and justified manner. It does not lie in retaining the collected taxes in excess of what is justified since the excess collection cannot even be properly termed as revenue . The excess collection of tax is a liability of the State and it lies in the interest of the revenue of the State to discharge its interest bearing liability without any delay. The sovereign cannot but be seen as fair honest and credible in its dealings with its subjects. Any lapse in this regard tarnishes the image and credibility of the sovereign. It certainly cannot act like any unscrupulous businessman who is seen to dodge his liabilities by resort to frivolous excuses and devious ways. In absence of any cogent reasons justifying withholding of the refund due to the petitioner under Section 143(1) for AY 2017-18 2018-19 we find that the proposal as well as the approval granted by Principal Commissioner of Income Tax lacks consideration of the relevant and germane conditions. We accordingly set aside the order and direct the respondents to undertake the exercise afresh and pass an order under Section 241A. We therefore grant six weeks time to the respondents to consider the aspect whether the amount found due to be refunded or any part thereof is liable to be withheld under Section 241A. The order must reflect due application of mind of the Assessing Officer while making a proposal whether or not to withhold any part of the refund amount. Such a proposal should be examined by the Principal Commissioner of Income Tax with due application of mind on all the aforesaid aspects. The entire consideration with the approval of the Principal Commissioner of Income Tax to the withholding of the refund amount or any part thereof should be completed within six weeks from today failing which we direct that without awaiting any further orders the respondents shall transmit the amount of Rs. 48, 361, 57, 240/- (for AY 2017-18) Rs. 421, 18, 02, 760/- (for AY 2016-17) and Rs. 349, 41, 45, 020/- (for AY 2018-19) with interest to the petitioner.
|