Court directs tax refund release despite pending assessment challenge

The High Court of Punjab and Haryana ruled in favor of the petitioner, directing the assessing authority not to withhold the tax refund for the assessment year 1979-80. The court held that the authority cannot withhold the refund solely due to pending proceedings challenging the annulled assessment order, citing precedent in Writ Petition No. 4378 of 1986 (Leader Valves Private Ltd. v. CIT [1987] 167 ITR 542).

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The High Court of Punjab and Haryana ruled in favor of the petitioner, Messrs. Suri Sons, Jalandhar, directing the assessing authority not to withhold the tax refund due to the petitioner for the assessment year 1979-80. The court held that the authority cannot withhold the refund simply because proceedings questioning the validity of the order annulling the assessment are pending. The judgment was based on a similar case, Writ Petition No. 4378 of 1986 (Leader Valves Private Ltd. v. CIT [1987] 167 ITR 542).

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