Dismissal of Writ Petition; Pursue Legal Remedy post ITAT Remand

The High Court dismissed the writ petition as withdrawn, allowing the petitioner to pursue an appropriate legal remedy following the revised assessment and demand notice issued post remand by the ITAT. The assessment finalized after the ITAT remand determined a payable amount of Rs.2,38,32,860, leading to a demand notice of Rs.71,14,028, which included the adjustment of the previously claimed refund amount of Rs.36.59 Lakhs. The petitioner's counsel opted to withdraw the writ application in light of these developments disclosed in the respondents' counter affidavits.

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Issues:
1. Refund of amount realized during the pendency of Appeal at ITAT.
2. Assessment completion and demand notice issued post remand by ITAT.

Analysis:
1. The writ petition sought a refund of Rs.36.59 Lakhs realized from the petitioner's bank account during the pendency of an appeal at the Income Tax Appellate Tribunal (ITAT), Ranchi. The petitioner contended that no demand existed as of the remand by the ITAT, and the Department should refund the amount. However, subsequent developments revealed that the assessment was completed post remand by ITAT, resulting in a demand notice issued on 31st March 2022 for a total demand of Rs.71,14,028, including the adjustment of the claimed refund amount. The respondents filed a counter affidavit and a supplementary counter affidavit, disclosing these developments. Consequently, the petitioner's counsel sought permission to withdraw the writ application to pursue an appropriate remedy as per the law.

2. Post the remand by the ITAT, the assessment was finalized, and an order was passed on 31st March 2022, with a corrigendum dated 11th April 2022. The assessment determined an amount of Rs.2,38,32,860 payable by the petitioner, leading to a demand notice issued for Rs.71,14,028, which included the adjustment of the previously claimed refund amount of Rs.36.59 Lakhs. The supplementary counter affidavit filed by the respondents highlighted these details, prompting the petitioner's counsel to withdraw the writ petition to pursue the appropriate legal recourse in light of the updated assessment and demand notice.

Therefore, the High Court dismissed the writ petition as withdrawn, granting the petitioner the liberty to seek the necessary remedy in accordance with the law based on the revised assessment and demand notice issued subsequent to the ITAT's remand decision.

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