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TMI Blog2021 (3) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the Act. This is also the view of the coordinate Benches of this Court taken in Maple Logistics and Ericsson India Pvt. Ltd. [ 2019 (11) TMI 340 - DELHI HIGH COURT] Prior to the A.O. passing an order under Section 241A of the Act, it may possibly be a constructive approach if the assessee is heard. There are several cases where assessees are looking for liquidity in the form of money received via refund and even if the A.O. is of the view that release of refund is likely to adversely affect the interests of the Revenue, the Revenue could, in a given case, take security in the form of bank guarantee or other solvent security as deemed fit and thus, in a sense, balance the interests of both the assessee and the Revenue. We have only given one illustration, there could be several situations of like nature and therefore, perhaps hearing the assessee at some stage, either before or after, the A.O. may help in resolving such disputes. - W.P.(C) 10764/2020 - - - Dated:- 18-3-2021 - HON'BLE MR. JUSTICE RAJIV SHAKDHER AND HON'BLE MR. JUSTICE TALWANT SINGH Petitioner Through: Mr. Salil Kapoor with Ms. Ananya Kapoor, Advocates. Respondents Through: Mr. K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndicate, at this juncture, that the petitioner s communication dated 22.09.2020 and 17.08.2020 was addressed to the Assistant Commissioner of Income Tax, Circle 10(1) [in short ACIT ], i.e., the officer who evidently had jurisdiction in the matter. 6.2. Resultantly, in effect, there was no resolution to the grievance articulated by the petitioner. The petitioner in the fond hope that issue could still be resolved wrote another letter dated 26.10.2020 to the Revenue; only to be disappointed. 7. It is in this backdrop that the petitioner finally took the decision to approach this Court. Notice in the instant writ petition was issued on 21.12.2020 when service on behalf of the Revenue was accepted by Mr. Kunal Sharma. The order, briefly, recorded the controversy in issue. The returnable date in the matter was fixed as 15.01.2021. 7.1. On 15.01.2021, Mr. Sharma was not present in the case. The Court in the interest of justice deferred adverse orders and directed that the matter be placed before it on 19.02.2021. 7.2. On 19.02.2021, the Bench recorded the following: 1. Further time to obtain instructions qua refund is sought. 2. The counsel for the petitioner stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission that under the extant provisions of the law, i.e., Section 143 (1) of the Act, once a return is processed and refund is determined, the Revenue is obliged to grant refund notwithstanding the fact that the scrutiny notice has been issued. 10.2. It is Mr. Kapoor s submission that, up-until today, the petitioner has not been served with any order under Section 241A of the Act. In support of this plea, Mr. Kapoor has relied upon the following judgments: (i) Maple Logistics (P) Ltd. v. Principal Commissioner of Income Tax, (2019) 112 taxmann.com 199 (Delhi): 2019 SCC OnLine Del 10961 (ii) Ericsson India Pvt. Ltd. v. ACIT, (2020) 217 taxmann.com 381. 11. We have heard learned counsel for the parties and have perused the record. Before we proceed further, it may be relevant to extract the relevant parts of Section 143 (1): 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely: (a) the total income or loss shall be computed after making the following adjustments, namely: (i) any arithmetical error in the return; [*** ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said provisions would show that once the return is filed under Section 139 or in response to the notice under Section 142(1), the return is required to be processed in the manner indicated in the latter part of the provision. 12.1. In particular, clause (c) of the sub-section (1) of Section 143 inter alia provides for determination of the refund after adjustment of tax, interest and fee, if any, computed under clause (d) of the very same provision. Clause (d) of sub-section (1) of Section 143 speaks about intimation being prepared or generated and sent to the assessee specifying the sum determined to be payable or the amount of refund due to the assessee under clause (c). Clause (e) of Sub-Section 1 of Section 143 provides that the amount of refund due to the assessee in pursuance of the determination made under clause (c) of the very same provision shall be granted to the assessee . 13. Record shows that the assessee s case has crossed the stage alluded to in clause (c) and (d) of sub-section (1) of Section 143, the only part which remains is the grant of refund. The Revenue can, in law, withhold the refund only by exercising powers under Section 241A of the Act. 13.1. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long with interest as required under the provisions of the Act. This is also the view of the coordinate Benches of this Court taken in Maple Logistics and Ericsson India Pvt. Ltd. (Supra) 17. Before we part, we may also indicate that prior to the A.O. passing an order under Section 241A of the Act, it may possibly be a constructive approach if the assessee is heard. There are several cases where assessees are looking for liquidity in the form of money received via refund and even if the A.O. is of the view that release of refund is likely to adversely affect the interests of the Revenue, the Revenue could, in a given case, take security in the form of bank guarantee or other solvent security as deemed fit and thus, in a sense, balance the interests of both the assessee and the Revenue. We have only given one illustration, there could be several situations of like nature and therefore, perhaps hearing the assessee at some stage, either before or after, the A.O. may help in resolving such disputes. 18. As a matter of fact, in GKN Drive Shafts (India) Ltd. v. ITO, (2003) 1 SCC 72, in the context of proceedings under Section 147 of the Act, the Supreme Court has put in p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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