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TMI Blog2016 (11) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue vis-a-vis Section 237 is partly correct in the sense that undoubtedly it provides for refund claim to the assessee wherever the circumstances warrant and the assessment completed yields results in excess amounts repayable. At the same time, it is hard to accept the wide proposition that the revenue seeks to place having regard to Section 237. Section 237 in one sense locates the restitutionary principle which is part of the larger right of every citizen. That it is part of the Income Tax Act and, therefore, itself in the taxation universe, does not in any manner undermine the restitutionary principle and the reasonableness inherent in it. In other words, if such provision does not exist then the assessee would still have a right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) and 142 (1) which according to them were issued with the sole purpose of preventing them from payment of refund claims pending before the concerned Assessing Officers for various assessment years on account of excess withholding of amounts paid towards estimated tax liability. It is submitted that the withholding on account of Section 143 (1D) which provision was introduced by the Finance Act, 2012, reads as follows: - 143(10) Notwithstanding anything contained in sub-section (1), the processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2) The petitioners urged that the provision was sought to be interpreted in the light of Instruction No.1 of the Circular of the CB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power of the CBDT to issue such instructions can be traced only to Section 119 of the Act. Therefore, such 'instruction' also has to adhere to the discipline of Section 119 of the Act. 23. The real effect of the instruction is to curtail the discretion of the AO by 'preventing' him from processing the return, where notice has been issued to the Assessee under Section 143(2) of the Act. If the legislative intent was that the return would not be processed at all once a notice is issued under Section 143 (2) of the Act, then the legislature ought to have used express language and not the expression shall not be necessary . By the device of issuing an instruction in purported exercise of its power under Section 119 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as undoubtedly Section 143 (1D) does. This Court is of the opinion that the submissions of the revenue vis-a-vis Section 237 is partly correct in the sense that undoubtedly it provides for refund claim to the assessee wherever the circumstances warrant and the assessment completed yields results in excess amounts repayable. At the same time, it is hard to accept the wide proposition that the revenue seeks to place having regard to Section 237. Section 237 in one sense locates the restitutionary principle which is part of the larger right of every citizen. That it is part of the Income Tax Act and, therefore, itself in the taxation universe, does not in any manner undermine the restitutionary principle and the reasonableness inherent in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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