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TMI Blog2021 (3) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of the order. 2. What is not in dispute is that the said order has quantified the refund amount at Rs. 5,89,14,434/-. This amount concerns the assessment year [in short 'AY'] 2018-2019. The intimation received vide order dated 02.10.2019 by the petitioner was sent by the Revenue pursuant to return being filed qua the aforementioned AY and the same being processed under Section 143(1) of the Income Tax Act, 1961 [in short "the Act"]. 3. Interestingly, in the month preceding the intimation of refund, via order dated 02.10.2019, the petitioner was served with notice dated 22.09.2019 under Section 143(2) of the Act [hereafter referred to as "scrutiny notice"]. 4. It appears, since the refund amount was not being released to the petitioner; it entered into a correspondence on the issue with the Revenue. The letters sent to the Revenue in this behalf are dated 16.07.2020, 06.10.2020, 17.08.2020, 22.09.2020, 06.10.2020 and 19.10.2020. 5. These efforts bore no fruit. Exasperated with the approach of the Revenue, the petitioner uploaded a complaint on the E-Nirvan Grievance Portal of the Revenue. This complaint was addressed to the assessing officer [in short "A.O."]. The complaint w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Mr. Salil Kapoor], discloses that the Court had put the Revenue to notice that "if within two weeks it is not informed that any notice under Section 241A of the Income Tax Act, 1961 has been issued and the notice not placed before this Court, this Court will direct refund without granting any further time." 1.2. Mr. Kunal Sharma, who appears for the Revenue, has indicated that since a faceless system has been put in place, AO has not been able to pass on the information sought with due alacrity to respondent no. 4. 1.3. We are informed that respondent no. 4 is responsible for ordering payment of the refund amount. 2. List the matter on 18.03.2021. In case there is no clarity, on this issue on the next date of hearing, we will assume that there is no order passed under Section 241 A of the Income Tax Act, 1961. Furthermore, the concerned officer will join the proceedings on the next date of hearing." 9. It is in these circumstances that the matter has been taken for hearing. Mr. Sharma has literally thrown up his hands and indicated to us that he has received no instructions as regard payment of refund to the petitioner. 9.1. Mr. Sharma says that the system has become fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made:] [Provided also that no adjustment shall be made under sub-clause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 2018;] (b) the tax [interest and fee], if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax [interest and fee], if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax [interest or fee]; (d) an intimation shall be prepared or generated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue can stall the grant of refund, if the release of the refund amount is likely to adversely affect its interests. 13.3 However, before the A.O. embarks on this route, he is required to cross two hoops. First, the A.O. is required to record his reasons in writing as to how grant of refund is likely to adversely affect the interest of the Revenue. Second, the A.O. is obliged to obtain the previous approval of his superior, i.e., the Principal Commissioner or the Commissioner as the case may be. 14. Therefore, a plain reading of Section 241A shows that the mere issuance of the scrutiny notice under Section 143 (2) of the Act cannot stall the remittance of refund to the assessee. The refund can only be stalled if the conditions stipulated in Section 241A of the Act, to which we have made a reference above, are fulfilled, i.e., the A.O. records his reasons in writing as to why the release of refund is likely to affect the interests of the Revenue and that this step of the A.O. receives the imprimatur [which obviously would mean prior approval] of his superior officer, i.e., Principal Commissioner or Commissioner as the case may be. 15. The Revenue has brought nothing on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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