Case Law Details
Oyo Hotels And Homes Private Limited Vs DCIT (Delhi High Court)
Delhi High Court held that withholding of Income Tax refund merely because notice has been issued under section 143(2) of the Income Tax Act is unjustified and bad in law.
Facts- The Petitioner filed a ROI for AY 2020-2021 declaring a loss of Rs.16,13,83,22,476/- and claimed a refund of Rs.31,46,26,494/- on account of tax deducted at source under Section 139 of the Income Tax Act, 1961. Pursuant to a de-merger and to give effect to the Scheme of Arrangement, the Petitioner filed a revised return of Income Tax for AY 2020-2021 on 27.03.2021 declaring a loss of Rs.16,70,16,05,998/- and claiming a refund of Rs.43,91,40,294/-.
The Petitioner was subjected to a scrutiny assessment u/s. 143(2) of the Act by notice dated 29.06.2021 which was responded to by the Petitioner with all the necessary clarifications as sought for, on 29.07.2021.
Subsequently, a notice u/s. 142(1) of the Act was sent to the Petitioner on 14.12.2021, wherein detailed information and documents were sought by the Revenue. The Petitioner submitted a response to the same on 27.12.2021. On the same day, the Petitioner received an intimation u/s. 143(1) of the Act which stated that a refund of Rs.33,05,84,840/- (inclusive of interest) has been calculated as due to the Petitioner. Despite the lapse of several months after the passing of the Refund Intimation, no refund was received by the Petitioner.
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