9911796707
TMI Blog2015 (11) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... as chosen not to grant the refund immediately as it was due after the orders of C.I.T. (Appeals) and for such a long time in spite of several reminders by the petitioner. (B) this Hon'ble Court be pleased to issue a writ of mandamus or any other appropriate writ, order or direction asking the respondent to refund the above amount of Rs. 17,08,78,351/- with interest thereon under section 244A within a period of 15 days from the date of order. (C) this Hon'ble Court be pleased to stay proceedings under section 154 by notices at Annexures F1 and F2 till the above refund with interest is given to the petitioner and to stay penalty proceedings under section 271(1)(c) initiated by notices at Annexures G1 and G2 till the assessment appeals bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stantial interest under section 244A of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). It appears that the petitioner did not receive any reply from the Chief Commissioner of Income Tax but saw a letter addressed by the Chief Commissioner to the Assessing Officer instructing him to refund the above amounts before 15.6.2015. However, no such refund was granted till 15.6.2015 or even later but on the contrary, the petitioner received two notices under section 154 of the Act dated 31.7.2015 for assessment years 2007-08 and 2008-09 and two notices under section 271(1)(c) dated 27.7.2015 for assessment years 2010-11 and 2011-12. The petitioner gave its reply to all the notices and received the replies from the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount which is to be refunded to the petitioner and, therefore, necessary directions be issued to the respondent to forthwith refund such amount. It was further urged that the respondent be restrained from proceeding further with the notices issued under section 154 and section 271(1)(c) of the Act till such refund is granted, inasmuch as, such notices have been issued only with the oblique view of raising a demand to defeat the rightful claim of the petitioner. 5. Opposing the petition, Mr. Pranav Desai, learned senior standing counsel for the respondent invited the attention of the court to the affidavit-in-reply filed by the respondent to point out that while it is true that refund of an amount of Rs. 17,08,78,351/- is due to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this regard, during the course of hearing of the petition, the court had called upon the learned counsel for the respondent to point out as to whether there was any provision under the Act which permits the respondent to retain the refund amount towards demand which are likely to arise and which had not yet arisen. The learned counsel for the respondent is not in a position to point out any such provision which permits the respondent to retain the amount of refund due to the petitioner under the provisions of the Act. 8. A perusal of the provisions of section 240 of the Act reveals that when refund of any amount becomes due to the assessee, the Assessing Officer shall, except as otherwise provided in the Act, refund the amount to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is due and payable by it, such amount is sought to be retained on the ground of likelihood of a demand being raised. The act of the respondent of retaining the amount of refund is not backed by any provision of law. Under the circumstances, the action of the respondent authority, in seeking to retain the amount of refund due to the assessee against likely future demands that may be raised, is without any authority of law. 10. Under the circumstances, petitioner is entitled to a direction to the respondent to forthwith refund to it the entire amount of refund without any adjustment being made against such amount, inasmuch as, the respondent cannot be permitted to take advantage of his own wrong in not refunding the amount due and payable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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