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2021 (8) TMI 383 - HC - Income TaxWithholding of the refund - petitioner submitted that to invoke the provision of Section 241A AO has to form an opinion that the grant of refund is likely to adversely affect the revenue - HELD THAT:- Withheld the refund without assigning any reason though the statute mandates for recording the same. Having not done so the officer concerned has acted arbitrarily. The procedure followed by the Assessing Officer does not also show the proper application of two independent provisions as in Section 241A and Section 143 wherein once a refund is declared after scrutiny proceedings and such refund is withheld, a reasoned order has to follow because the assessment in such a case is done after production of materials and evidence required by the AO. That apart and in any event the petitioner/assessee is a public limited company whose accounts are stringently scrutinized at the internal level. It is, therefore, more so required to apply the provisions more cautiously while withholding the refund after the same has been declared on completion of assessment on scrutiny. Analysis and findings the action on the part of the respondents in withholding of the refund for the assessment year 2018-19 is not sustainable in law and is set aside and quashed. The petitioner, is therefore, entitled to a mandatory order of refund. The respondents are directed to refund the amount within a period of four weeks from date with further interest on the principal sum from the date upto which interest has been added has been added to the principal sum in arriving at the figur till actual refund as per the provisions of the Income Tax Act, 1961. The respondents shall act on the basis of a server copy of this order without insisting for a certified copy thereof while processing the refund.
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