Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 93 - HC - Income TaxWithholding of refund u/s 241A - Eligibility of Interest on refunds - Notice u/s 143(2) of the Act has been issued and the Respondents want to verify the claim for deduction u/s10AA - HELD THAT:- This Court is of the view that an Order under Section 241A of the Act cannot be passed in a mechanical and routine manner. Refunds cannot be withheld just because the Notice under Section 143(2) of the Act has been issued and the Respondents want to verify the claim for deduction u/s 10AA of the Act. In the present case the impugned Order u/s 241A of the Act is a generic Order and no attempt has been made by the Respondents to substantiate how the grant of the refund is likely to adversely affect the Revenue. It is settled law that the refund due to the Petitioner is liable to be released at the time of issuance of the intimation/order under Section 143(1) of the Act unless an Order for withholding of refund has been passed under Section 241A of the Act explicitly recording that the grant of refund is likely to adversely affect the Revenue. As the impugned Order lacks sufficient reasoning to hold that the Revenue would be adversely affected by the grant of refund. Accordingly, the impugned Order dated 15th June, 2022 passed under Section 241A of the Act is quashed and the matter is remanded back to the Office of the Assistant Commissioner of Income Tax Circle 43(1), Delhi with a direction to pass a fresh speaking order within six weeks. As the tax amount payable on the disputed amount of Rs.10.95 crore (being the claim for deduction under Section 10AA) under Section 115JB would be Rs.2,36,14,691/- and under the normal provisions of Act would be Rs.3,82,94,093/-, this Court is of the view that even if the higher amount of the aforesaid amounts is withheld, the Petitioner would still be entitled to refund of Rs.16,68,98,449/- forthwith along with applicable interest under Section 244A of the Act (which we are informed totals to Rs.2,42,00,275/- till 01st August, 2022). Till the Assistant Commissioner of Income Tax Circle 43(1), Delhi passes a fresh Order within the stipulated time, this Court directs the Respondents to refund Rs.16,68,98,449/- along with applicable interest under Section 244A of the Act till the date of refund within two weeks.
|