2022 (4) TMI 507 - HC - Income Tax

Withholding of refund - Release of refund u/s 241A with Interest u/s 244A - refund after the completion of assessment u/s 143(3) - Petitioners prays for release of refunds comprising principal amount and interest calculated up to February, 2022 along with applicable interest u/s 244A due to the Petitioner for the AY 2017-18 and refunds comprising principal and interest calculated up to February, 2022 along with applicable interest under Section 244A of the Act due to the Petitioner for the AY 2018-19 - HELD THAT - On the last date of hearing, this Court had directed the respondents-revenue to place on record the alleged orders passed under Section 241A of the Act.Today, learned counsel for respondents-revenue states that no order has been passed u/s 241A of the Act till date. Keeping in view the aforesaid clarification, this Court directs the respondents-revenue to release the refund amounts due to the petitioner within four weeks in accordance with law. With the aforesaid direction, the present writ petitions along with pending applications stand disposed of.

Summary

Issues:
Challenge to impugned intimations under Section 143(1) of the Income Tax Act, 1961 for Assessment Years 2017-18 & 2018-19, Release of refunds after completion of assessment under Section 143(3), Invocation of action under Section 241A of the Act.

Analysis:
The petitioners filed writ petitions challenging the intimations under Section 143(1) of the Income Tax Act, 1961 for the Assessment Years 2017-18 & 2018-19, specifically related to the release of refunds post assessment under Section 143(3) and the invocation of action under Section 241A of the Act. The petitioners, through their counsel, requested the release of refunds amounting to specific principal and interest figures for both assessment years. During the proceedings, the Court had directed the revenue respondents to provide the alleged orders passed under Section 241A of the Act.

Subsequently, the counsel for the revenue respondents informed the Court that no order had been passed under Section 241A of the Act until that date. Taking note of this clarification, the Court issued a directive to the revenue respondents to release the refund amounts owed to the petitioners within four weeks as per the law. Following this direction, the Court disposed of the present writ petitions and any pending applications. The judgment thus resolved the issue of refund release in accordance with the legal provisions and the specific requests made by the petitioners, based on the absence of orders under Section 241A of the Income Tax Act, 1961.