2016 (3) TMI 1080 - HC - Income Tax

Court orders Income Tax Department to expedite assessment for refund, adds Rs. 3 crores to income

The Court directed the Income Tax Department to process the Petitioner's return of income for the Assessment Year 2014-15 and issue a refund. An interim ... Refund seeked - Held that:- As the Petitioner informs the Court that the Assessing Officer (‘AO’) has issued a draft assessment order for the AY 2014-15 making an addition of ₹ 3 crores to the total income of the Assessee. It is stated that since the Petitioner is keen on having the refund issued, it proposes to challenge the final assessment order before the Commissioner of Income Tax (Appeals) and would be making a statement to that effect before the AO by the Petitioner to enable the AO to issue the final assessment order. Learned Senior Standing counsel for the Department, states that if a statement to the above effect is made by the Petitioner before the AO then the final assessment order will be passed soon thereafter and the refund issued not later than 30 days after the passing of the final assessment order. Issues:1. Direction to process the Petitioner's return of income for AY 2014-15 and issue a refund.2. Challenge to Instruction No.1/2015 issued by CBDT.3. Expedited assessment under Section 143(3) of the Income Tax Act, 1961.4. Addition of Rs. 3 crores to the total income of the Assessee.5. Refund issuance timeline after final assessment order.Analysis:1. The writ petition sought a direction for the Income Tax Department to process the Petitioner's return of income for the Assessment Year 2014-15 and issue a refund as requested. Additionally, it aimed to challenge Instruction No.1/2015 issued by the CBDT, alleging it exceeded the scope of Section 143(1D) of the Income Tax Act, 1961.2. An interim order was issued by the Court directing the expedited assessment under Section 143(3) of the Act, considering the CBDT's Instruction No.1/2015. The Court expressed optimism that the assessment order would be completed before the next hearing date.3. The Petitioner's counsel informed the Court that the Assessing Officer had issued a draft assessment order for the AY 2014-15, including an addition of Rs. 3 crores to the Assessee's total income. To facilitate the refund issuance, the Petitioner intended to challenge the final assessment order before the Commissioner of Income Tax (Appeals) and agreed to make a statement to that effect before the AO.4. The Department's Senior Standing Counsel mentioned that upon the Petitioner's statement before the AO, the final assessment order would be promptly issued, with the refund to be processed within 30 days after the final assessment order's issuance.5. Considering the Department's assurance regarding the refund issuance timeline, the Court found no need for further directions and disposed of the writ petition. The order was issued for immediate action (dasti).