2018 (3) TMI 1470 - HC - Income Tax

Seeking refund of the TDS deposited - Held that - As the matter is pending scrutiny before the competent officer at this stage exercising the discretion under Section 143(1d) of the Income Tax Act, no mandamus can be issued by this Court in the matter. The petitioner may approach the competent authority of the department furnishing all information and we direct the department to complete the scrutiny assessment and thereafter proceed to consider the question of refund in accordance with law. We dispose of the writ petition with liberty to the petitioner to approach the authority when the matter is pending for scrutiny assessment.

Summary

Issues:
Seeking refund of TDS, maintainability of the petition during scrutiny assessment, reliance on Bombay High Court judgment, jurisdiction of the Court to issue mandamus for refund, direction to complete scrutiny assessment before considering refund, payment of interest on refund, disposal of writ petition with liberty to approach authority during scrutiny assessment.

Analysis:
The petitioner filed a writ petition under Article 226 seeking a refund of TDS amounting to ?54,04,14,180. The petitioner contended that the refund for the year 2016-17 was not being granted. Reference was made to a judgment of the Bombay High Court in the case of Group M. Media India (P) Ltd. vs. Union of India & Ors. The respondents objected to the maintainability of the petition due to the pending scrutiny assessment under Section 143(3) of the Income Tax Act. The petitioner argued against this objection, citing the Bombay High Court judgment.

The Court observed that since the matter was pending scrutiny assessment, no mandamus could be issued at that stage. The petitioner was directed to approach the competent authority, furnish all required information, and complete the scrutiny assessment process. It was emphasized that the question of refund would be considered in accordance with the law after the scrutiny assessment was completed. The petitioner assured the Court that interest on the refund would be paid as per the law to prevent any monetary loss.

Considering all circumstances, the Court declined to interfere in the matter at that stage and disposed of the writ petition. The petitioner was granted liberty to approach the authority during the pending scrutiny assessment process. The judgment highlighted the importance of completing the scrutiny assessment before addressing the refund issue, ensuring compliance with legal procedures and protecting the petitioner's interests.