Case Law Details
The challenge in this writ petition by Tata Teleservices Ltd. is to an Instruction No. 1 of 2015 dated 13th January 2015 issued by the Central Board of Direct Taxes (CBDT) (Respondent No.1) and the consequential letter dated 8th September 2015 issued by the Deputy Commissioner of Income Tax (DCIT) Circle 25(1) (Respondent No.2) denying refund of the Petitioner under Section 143(1) of the Act for three assessment years (AYs) 2012-13, 2013-14 and 2014-15. The refunds were declined for the reason that the case was pending scrutiny and that in the light of Section 143(ID) of the Income Tax Act, 1961 (Act) and the Instructions of the CBDT, refund could not be processed for the said AYs.
Relevant to the present case is Section 143 (1) (e) which states that the amount of refund due to the Assessee, pursuant to the determination of the tax under sub-clause (c) computed “shall be granted to the Assessee”.
By the Finance Act, 2012, with effect from 1st July 2012, sub-section (1 D) was inserted in Section 143 and it reads as under:
“(1D) 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 Memorandum to the Finance Bill, 2012 gives the following explanation for insertion of the above provision:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
