Case Law Details
Tata Communications Ltd. Vs DCIT (Bombay High Court)
Conclusion: Once a notice under subsection (2) of Section 143 was issued, the suspension of the refund arising out of the return filed by assessee would not be automatic till the passing of the order of assessment under sub-section (3) of Section 143. Instead AO to take up an expeditious disposal of the processing of return under sub-section (1) of Section 143 at least once assessee requests for release of the refund and send as an intimation to assessee if he wished to withhold the same.
Held: Assessee approached AO and higher authorities repeatedly requesting that assessee’s return in question be processed under Section 143(1) and refund flowing from such return, subject to limited adjustments envisaged under the said provision, be released, notwithstanding the fact that AO had issued notice under Section 143(2). In the present case, for the assessment year 2015-16, the return was filed on 29.09.2015 for which, the time limit under the normal provision of sub-section (1) of Section 143, for processing the return was over long back. Even though AO having issued notice under subsection (2) of Section 143, he would get an extended time for proceeding under sub-section (1), it would be wholly inequitable for AO to merely sit over assessee’s request for refund citing the availability of time upto the last date of framing the assessment under sub-section (3) of Section 143. At lease once the time limit envisaged in the proviso to sub-section (1) of Section 143 was over without AO processing the return under sub-section (1) and even though notice under sub-section (2) of Section 143 might have been issued, AO, by all reasonable interpretation of the statutory provisions would be expected to respond to assessee’s request for either granting refund or indicating that in terms of the adjustments impermissible under sub-section (1) of section 143, such refund or part thereof was not available to assessee. Thus, it could not be accepted once a notice under subsection (2) of Section 143 was issued, the suspension of the refund arising out of the return filed by the assessee would be automatic and till the passing of the order of assessment under sub-section (3) of Section 143. The reasonable interpretation of the statute would be, to expect AO to take up an expeditious disposal of the processing of return under sub-section (1) of Section 143 of the Act at least once assessee requests for release of the refund and send as an intimation to the assessee if he wished to withhold the same. As per the settled law, AO could not avoid processing the return under Section 143(1) and granting refund to assessee if due as per such return. AO was directed to process the return under Section 143(1) of the Act and release refund if due, with statutory interest as payable within one month from the date of receipt of copy of this order.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. Heard the Counsel for the parties. The Petitioner has prayed for directions to the Respondents to process income tax return of the Petitioner for the Assessment Year 2015-16 and to grant refund of a sum of Rs.154,47,50,600/- with interest as per statutory provisions.
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