Assessee filed its return seeking refund. Subsequently, return so filed was revised. Despite not having processed the return of income under section 143(1) a notice was issued by the Assessing Officer proposing to withhold the refund relatable to assessment year 2017-18, in view of section 241A.

On writ the Court held that S. 241A could only be invoked, after the refund due was determined under section 143(1) and, thus, impugned notice deserved to be quashed. Court held that it is an undisputed position that neither the regular return of income nor the revised return of income for the subject assessment year has been processed under section 143(1) till date. Consequently, the occasion to withhold any refund under section 241A at this stage does not arise. Therefore on the admitted facts the application/ invocation of section 241A of the Act is premature. Accordingly show-cause notice proposing to withhold refund due is quashed and set aside. (WP No. 1845 of 2019 dt 16-09 2019) (AY. 2017-18) (Also  refer, WP No 894 of 2019 dt 8-07-2019 (AY. 2015 16)