Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (7) TMI 668 - HC - Income TaxRefund withheld u/s 241A - limited scrutiny under Section 143(2) - only ground for withholding refund is that since case of the petitioner has been selected for scrutiny u/s143(2) assessment is yet not complete and therefore genuineness of the refund claimed by the assessee is yet to be verified - Neither the copy of the order nor the reasons for withholding the refund were provided to the petitioner and accordingly, the present writ petition has been filed - HELD THAT:- The exercise of withholding of refund u/s 241A pursuant to notice u/s 143(2) without recording justifiable reasons, is not in consonance with the legislative intent and mandate of the aforesaid provision. The reasons cited do not support the finding that refund would adversely affect the Revenue. Reasoning given by the Income-Tax Officer is contrary to Section 241A of the Act. Accordingly, we set aside the impugned communication/ order dated 10.01.2020 - grant three weeks' time to the respondents to re-consider the aspect whether the amount found due to be refunded, or any part thereof, is liable to be withheld under Section 241A in line with the decisions of this court as noted above. 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.
|