TMI Blog2019 (7) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... GH COURT] As per the settled law, the Respondents cannot avoid processing the return u/s 143(1) and granting refund to the Petitioner if due as per such return. The Respondents have not cited justifiable reasons why such refund cannot be released. Respondents are directed to process the return u/s 143(1) and release refund if due, with statutory interest as payable within one month from the date of receipt of copy of this order. - WRIT PETITION NO.894 OF 2019 - - - Dated:- 8-7-2019 - AKIL KURESHI S.J. KATHAWALLA, JJ. Mr. J.D. Mistry, Senior Advocate with Mr. Hiten Chande I/by Mint and Confreres, for Petitioner. Mr. Charanjeet Chandrapal, for Respondents. P.C.: 1. Heard the Counsel for the parties. The Petitioner has prayed for directions to the Respondents to process income tax return of the Petitioner for the Assessment Year 2015-16 and to grant refund of a sum of ₹ 154,47,50,600/- with interest as per statutory provisions. 2. Brief facts are as under : The Petitioner is a Company registered under the Companies Act, 1956 and is regularly assessed to the tax. The Petitioner had filed return of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions, it is stated that the Petitioner was informed that the refund cannot be issued in view of Section 143(1D) of the Act, since notice under Section 143(2) of the Act is already issued. A reference is also made to a draft assessment order for the year under consideration, which if ultimately finalized would give rise to a tax demand from the Petitioner instead of department paying refund. 6. As we would notice, as per different decisions of this Court and other High Courts, none of these grounds will be sufficient to enable the Respondents to withhold the refund arising out of the said return for the assessment year 2015-16. This Court in the case of Group M. Media India (P) Ltd. V/s. Union of India [2017] 77 taxmann.com 106 (Bombay ) in the context of the provisions contained in Section 143(1D) and 143(1) of the Act, had observed as under : 8. Before us, Mr. Mohanty does not dispute the fact that in view of the Delhi High Court decision in Tata Teleservices Ltd. (Supra) Instruction No.1 of 2015 dated 13th January, 2015 of the CBDT would not fetter the Assessing Officer in any manner from exercising his discretion to process the return of income under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the averments made in the first two petitions (of Tata Projects Ltd.) and annexures to the petitions show that after the returns were transferred to the AO much before notices were issued under sub-section (2) of Section 143, the Petitioner made repeated representations to the AO to process the returns and number of visits were made by the officers of the Petitioners. Perhaps, the AO was under an impression that he can wait till the last date provided for processing of the returns. If we peruse the affidavit of Mr. Madhukar AVES, Assistant Commissioner of Income Tax-2(3)(1), Mumbai, filed in Writ Petition No.2051 of 2017 and in particular paragraph 9, it is very clear that he is under an impression that as the last date for completing scrutiny assessment for the year 2015-16, is 31st December, 2017, he can wait till 31st December, 2017 for completing the scrutiny assessment. This approach which is reflected from the said affidavit, has to be deprecated. Secondly, he has completely ignored that such return has to be processed as there was no discretion exercised after service of notice under sub- Section (2) of Section 143. 8. Gujarat High Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original proviso to subsection (1D) has been substituted by a new proviso under which it is clarified that the proviso under said sub-section shall not apply to any return furnished for the assessment year commencing on or after 01.04.2017. Section 241A which was inserted simultaneously, now enables the Assessing Officer to withhold the refund in favour of the assessee which becomes due in terms of sub-section (1) of Section 143 if he is of the opinion that having regard to the fact that a notice has been issued under sub-section (2) of Section 143 that the grant of refund is likely to adversely affect the Revenue, he would, however, do so by recording reasons in writing and with previous approval of the Principal Commissioner or Commissioner and withhold such refund till the date the assessment is made. We may recall that Section 241 which was omitted w.e.f. 01.06.2001 previously enable the Assessing Officer to withhold the refund which becomes due and payable in terms of sub-Section (1) of Section 143 under certain circumstances including in a situation where a notice has been issued or is likely to be issued under sub-section (2) of section 143 of the Act and the Assessing Offi ..... 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