Allowing the petition the Court held that for withholding the refund the order must be in writing and prior approval of competent authority is mandatory. The withholding of the refund for the assessment year 2017-18 was not sustainable and therefore, was set aside and quashed. The assessee was entitled to refund with interest till the actual date of refund Relied on Maple Logistics Pvt Ltd. v. PCIT (2020) 420 ITR 258 (Delhi) (HC) Vodafone Idea Ltd. v. Dy.CIT(2020) 421 ITR 253 (Bom.)(HC). (AY.2017-18)
Mcnally Bharat Engineering Company Ltd. v. ACIT (2021) 437 ITR 265 / 282 Taxman 427 / 205 DTR 178 / 322 CTR 329 (Cal.)(HC)
S. 241A : Refund-Withholding of refund in certain cases-Order must be in writing and prior approval is mandatory-Withholding of refund without recording of reasons was held to be not valid. [S. 143(1), 244A, Art. 226]