TaxTMI 
TaxTMI 
2026 (8) TMI 1419
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....ds of appeal :- "1.1 That on the facts and circumstances of the case, the Ld. CIT(A) has erred in upholding the action of the Assessing Officer in denying the refund of Rs. 5,31,680/- claimed by the Appellant in the return of income filed in response to notice under section 148 of the Act. 1.2 That the Ld. CIT(A) has failed to appreciate that once the assessment has been completed accepting the returned income and determining total income at Nil, the excess tax paid by way of TDS/ advance tax necessarily results in a refund under section 237 of the Act, and withholding of such refund of contrary to purpose and scheme of the Act. 1.3 That Ld. CIT(A) has failed to appreciate that section 239 does not bar a claim of ....
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....e no return had been filed u/s 139. 4. The ld. CIT(A) upheld the action of the Assessing Officer by observing that proceedings u/ s 147 are intended for the benefit of the Revenue and not for conferring a fresh right upon the assessee to claim refund. The ld. CIT(A) relied principally upon the judgment of the Hon'ble Bombay High Court in K. Sudhakar S. Shanbhag following the decision of the Hon'ble Supreme Court in Sun Engineering Works Put. Ltd. 5. Aggrieved, the assessee is in appeal before us. The sole issue requiring adjudication is whether the assessee is entitled to refund of Rs. 5,31,680/- representing excess TDS, where the reassessment proceedings culminated in acceptance of the returned income and assessment of Nil ta....
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....loss and claiming refund of Rs. 5,31,680/- on account of taxes deducted at source. The copy of ITR acknowledgement is placed at paper book page 1. The assessment has ultimately been completed accepting the returned income and determining the taxable income at Nil. Thus, there remains no tax liability against the assessee. The only dispute is regarding entitlement to refund. 9. The Assessing Officer has denied the refund solely on the reasoning that section 239 permits refund only where the return is filed u/s 139. We are unable to subscribe to such interpretation. Section 237 provides that where the Assessing Officer is satisfied that the amount of tax paid by an assessee exceeds the amount with which he is properly chargeable under the ....
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....suant to notice u/s 148 cannot be denied merely because no original return had been filed u/s 139, once reassessment proceedings culminate in determination of the correct taxable income. 14. The reliance placed by the Revenue upon the decision in Sun Engineering Works Pvt. Ltd. 198 ITR 297 (SC) is, in our considered opinion, misplaced. The principle laid down therein is that reassessment proceedings us/ 147 are for capturing escaped income and the assessee is not entitled to reagitate issues concluded in the original assessment. However, the present case does not involve any fresh deduction or relief dehors the reassessment proceedings. The assessee merely seeks statutory refund arising directly from the assessment itself after determina....