TaxTMI 
TaxTMI 
2022 (8) TMI 93
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....ed challenging the Order dated 15th June, 2022 passed under Section 241A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). Petitioner further seeks a direction to the Respondents to issue refund of Rs. 19,70,42,170/- along with up-to-date interest. 2. Learned counsel for the Petitioner states that the Respondents vide email dated 27th January, 2022 confirmed that the Income Tax Return has been processed and refund along with interest amounting to Rs.21.80 crore under Section 244A of the Act has been determined as due to the Petitioner. She states that the refund due to the Petitioner was liable to be released at the time of processing of the return under Section 143(1) of the Act. She emphasises that Section 143(1) of the....
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....he old unit i.e. Unit 1, while Rs.50,95,912/- pertains to the new unit i.e. Unit 2. Consequently, according to her, over 95% of the deduction under Section 10AA of the Act pertains to the old Unit 1, the deduction of which already stands accepted by the Respondents by virtue of Orders passed under Section 143(3) of the Act for the previous assessment years. 7. Issue notice. Mr.Sunil Agrawal, learned Senior Standing Counsel accepts notice on behalf of the Respondents. 8. He has handed over an e-mail dated 31st May, 2022 written to him by the Jurisdiction Assessing Officer. The relevant portion of the said e-mail, after redacting the name of the officers in question is reproduced hereinbelow:- Email dated 31st May, 2022 "The assessee LL....
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....ord. In view of the above facts, it is humbly requested to represent the same before the Hon 'ble High Court of Delhi not to hold assessee 's plea whatsoever in withholding the refund as per the law and as per the provisions of section 241A of I.T. Act as the same is devoid of merit. Yours faithfully xxxxxxx" 9. Having heard the learned counsel for the parties, this Court is of the view that an Order under Section 241A of the Act cannot be passed in a mechanical and routine manner. Refunds cannot be withheld just because the Notice under Section 143(2) of the Act has been issued and the Respondents want to verify the claim for deduction under Section 10AA of the Act. In the present case the impugned Order under Section 241A of ....
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....s where refund is found to be due to the Assessee under the provisions of Sub-Section (1) of Section 143, and also a notice has been issued under Sub-Section (2) of Section 143 in respect of such returns. However, this does not mean that in every case where a notice has been issued under Sub-Section (2) of Section 143 and the case of the Assessee is selected for scrutiny assessment, the determined refund has to be withheld. xxx xxx xxx 30. The AO is duty bound to process the refund where the same are determined. He cannot deny the refund in every case where a notice has been issued under Sub-Section (2) of Section 143. The discretion vested with the AO has to be exercised judiciously and is conditioned and channelized. Merely because a s....
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....d the order denying refund on this ground alone would be laconic. Additionally, the reasons which are to be recorded in writing have to also be approved by the Principal Commissioner, or Commissioner, as the case may be and this should be done objectively." (emphasis supplied) 11. Subsequently, in Ericsson India Private Limited Vs. Additional Commissioner of Income Tax, Special Range-3, New Delhi & Anr., W.P.(C) 10373/2019 dated 18th February, 2020 this Court has held as under:- "18. The refund of amounts claimed - where they appear justified, by itself cannot be said to be adverse to the interest of the revenue. The interest of revenue lies in collecting revenue in a legal and justified manner. It does not lie in retaining the collecte....