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Challenge to Income-tax Department's action in withholding refund advice and prayer to prevent refund to Excise Department. Analysis: The petitioner challenged the Income-tax Department's action of not issuing advice to the bank for a refund of Rs. 33,67,369, which was refundable due to a modified assessment order. The refund was withheld under section 241 of the Income Tax Act until March 31, 1994, or the decision in the second appeal by the Income-tax Appellate Tribunal. The Chief Commissioner advised withholding the refund, and an attachment order was issued by the Excise Department. The court noted that the order under section 241 made the writ petition infructuous, as the Commissioner's order was unchallenged. The provisions of section 241 allow withholding refunds in certain cases where it may adversely affect revenue, as in this case where the refund was pending due to an appeal. The court emphasized the importance of timely action by the assessing authority to avoid such situations. The court held that the Income-tax Department's action of not issuing the refund advice was lawful, as the bank acts as an agent of the department and requires advice before making payments. The power to withhold refund advice was deemed necessary to avoid disrupting the refund process. Additionally, the court highlighted that the assessing officer has the authority to determine who is entitled to the refund, especially in cases involving multiple members of an association with conflicting views on refund allocation. Regarding the petitioner's right to file the writ petition as a former member of the association, the court found the petition maintainable despite denying relief based on the merits discussed in the judgment. The court did not adjudicate on issues related to the association's account or potential fraud, as the petition had become infructuous. Ultimately, the court dismissed the writ petition as infructuous, emphasizing the importance of timely actions by the Income-tax Department and the assessing authority to avoid such disputes in the future.
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