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2023 (11) TMI 128 - HC - Income TaxBenefit of Refund - Retention / withholding of refund in anticipation of demand - Status of the enforceability of the demand for the assessment years - Proceedings are still pending before DRP and yet to be adjudicated - HELD THAT:- As there is no recoverable demand from the petitioner as of today, and the readjustment is in anticipation of the conclusion of a particular proceeding in a possible manner without due process. At this stage, Respondents /Sri E. I. Sanmathi submits that the Ao could give due credit to the amounts refundable in terms of the order dated 28.02.2023 when the Ao will have to pass Orders-to-Give-Effect to the directions by the DRP. However, he is not able to point out any provision in the statute or otherwise to justify the retention in the peculiarities of this case. In the absence of the statutory provisions or the enablement otherwise in law, the retention of the amount in anticipation of conclusion of the DRP proceedings, and to give credit to this amount while giving-effect to the orders thereafter cannot be accepted. There would be no justification for denying the petitioner the advantage of the refund. It is too salient that a levy cannot be unless it is with the authority of law and therefore, there has to be a direction to the first respondent to ensure that steps are taken to affect refund in terms of the order dated 28.02.2023 to the petitioner. The next question for consideration is the reasonable time that must be accorded to the first respondent in the circumstances of the case, and after hearing both sides, this Court is of the considered view that the first respondent must be allowed six weeks from the date of receipt of certified copy of this order to extend the benefit of refund to the petitioner. The petition is allowed. The first respondent is directed to identify and take all steps to refund to the petitioner a sum of Rs. 380,39,86,658/- within six [6] weeks from the date of receipt of a certified copy of this order.
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