On Writ by the assessee against the recovery the single Judge held that the AO is not entitled to recover the entire tax which was assessed by him immediately after the order passed by him is confirmed by the CIT(A) without waiting for appeal to the Tribunal, the period for which is statutorily provided under S.253(3) of the IT Act . Accordingly single judge directed the AO to refund the amount recovered .On appeal reversing the Judgement of single Judge the division Bench held that on assessment order is set aside the refund is not automatic . Amount recovered is directed to be refunded with in four weeks from the date of the order passed by the Tribunal , in the event the appeal is decided in favour of the assessee. (AY.2010-11 to 2013-14)
CIT v. Bidar Nirmiti Kendra And Another. (2019) 417 ITR 491/ 310 CTR 185 / 266 Taxman 427/ 181 DTR 33 (Karn) (HC) Editorial : Order of single judge in Bidar Nirmiti Kendra. v. CIT (2019) 417 ITR 485/ 310 CTR 220 (Karn)(HC) is partly set aside.
S. 240 : Refund – Appeal – On assessment order is set aside –Refund is not automatic – Amount recovered is directed to be refunded with in four weeks from the date of the order passed by the Tribunal , in the event the appeal is decided in favour of the assessee. [S.253(3) ]