Case Law Details
Trueblue India LLP Vs Deputy/Assistant Commissioner of Income Tax (Delhi High Court)
HC held that an Order under Section 241A of the Act cannot be passed in a mechanical and routine manner. Refunds cannot be withheld just because the Notice under Section 143(2) of the Act has been issued and the Respondents want to verify the claim for deduction under Section 10AA of the Act. In the present case the impugned Order under Section 241A of the Act is a generic Order and no attempt has been made by the Respondents to substantiate how the grant of the refund is likely to adversely affect the
It is settled law that the refund due to the Petitioner is liable to be released at the time of issuance of the intimation/order under Section 143(1) of the Act unless an Order for withholding of refund has been passed under Section 241A of the Act explicitly recording that the grant of refund is likely to adversely affect the Revenue
Court is of the view that the impugned Order lacks sufficient reasoning to hold that the Revenue would be adversely affected by the grant of refund. Accordingly, the impugned Order dated 15th June, 2022 passed under Section 241A of the Act is quashed and the matter is remanded back to the Office of the Assistant Commissioner of Income Tax Circle 43(1), Delhi with a direction to pass a fresh speaking order within six weeks.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
