9911796707
TMI Blog2023 (12) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... icer, having regard to the fact that notice has been issued under sub-section (2) of Section 143, must record in writing an opinion with reasons on how the revenue s interest would be adversely affected if refund is allowed. The withholding of the refund in the manner as now considered by the Assistant Commissioner of Income Tax, ReAC (AU)-1(2)(1), Surat cannot be accepted, and there must be interference by this Court. This Court must record that it is undisputed that the petitioner has claimed refund for the Assessment Years prior to the Assessment Year 2021-22. The Principal Commissioner of Income-tax (AU)-1 has granted approval recording the details of the carry forward losses for the corresponding years, and consequentially, the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner : (By Sri. Tarun Gulati, Senior Advocate For Sri. Ajay J Nandalike., Advocate) For The Respondents (By Sri. Y.V. Raviraj A/W Sri. M. Dilip, Advocates) ORDER The petitioner has filed this petition for directions to the Respondents to issue refund of Rs. 9,30,46,736/- as computed under Refund Intimation dated 22.09.2022 bearing DIN: CPC/2122/A6/243697378 [Annexure A] along with applicable interest under Section 244A of the Income Tax Act, 1961 [for short, the IT Act ] in an expeditious and timely manner. Sri. Tarun Gulati, the learned Senior counsel for the petitioner, and Sri. Y.V. Raviraj, the learned Senior standing counsel for the respondents, are heard. 2. The petitioner, for the Assessment Year 2021-22 is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (AU)-1(2)(1), Surat to the Principal Commissioner of Income Tax (AR)-1 and the approval granted by the aforesaid Principal Commissioner of Income Tax (AR)-1. Sri. Tarun Gulati, with the assistance of these documents, canvasses: 4.1 that the Assistant Commissioner of Income Tax, ReAc (AU)-1(2)(1), without recording an opinion on whether grant of refund would likely affect the revenue adversely as is required under the provisions of Section 241A of the IT Act, has stated that because scrutiny assessment is pending with the Transfer Pricing Officer [TPO], the refund may be withheld, 4.2 that the Assistant Commissioner of Income Tax, ReAc (AU)-1(2)(1), in the Communication dated 20.12.2022, has referred to eleven different instances, incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... njustifiably withholding refund taking a short cited approach; that a pending regular assessment cannot be a reason for withholding the funds, and that the Assessing Officer must, while seeking permission of the Principal Commissioner of Income Tax, must record an opinion that grant of refund would in all likelihood affect the revenue adversely and such opinion must be supported by cogent reasons. 6. Sri. Y.V. Raviraj submits that the petitioner cannot dispute that if there is a reference to the TPO to examine the transfer pricing and the investigation is on, that there is every likelihood that the withholding of refund would be justified, and in any event, the assessment would be considered expeditiously and the permissible refund would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithholding of refund recording that reference to the TPO is pending and there is every likelihood of raising a demand. 8. This Court, upon examining the opinion and the reasoning offered by the Assistant Commissioner of Income Tax, ReAC (AU)-1(2)(1), Surat and the reasons recorded while granting approval, must opine that the consideration falls short of the requirements under the provisions of Section 241A of the IT Act, which stipulate that the Assessing Officer, having regard to the fact that notice has been issued under sub-section (2) of Section 143, must record in writing an opinion with reasons on how the revenue s interest would be adversely affected if refund is allowed. The withholding of the refund in the manner as now consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,46,736/- along with interest as is permissible in law within a timeframe without prejudice to recover demand on the conclusion of the pending proceedings. Hence, the following: ORDER i. The petition is allowed. ii. The first and the fifth respondents [National Faceless Assessment Centre through the Commissioner of Income Tax-1 and Central Processing Cell through the Commissioner of Income Tax], are directed to take appropriate action for refund of a sum of Rs. 29,30,46,736/- along with permissible interest under Section 244A of the IT Act, and the measures shall be taken by the aforesaid respondents to ensure that the petitioner has the advantage of the refund as afore permitted within eight [8] weeks from the date of receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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