AO passed the order withholding the refund of the assessee . The reason for withholding the refund was the assessee has shown huge loss in the return which requires investigation . On writ the Court held that declaring the loss cannot be the ground to doubt the contents of the return or the loss suffered by the assessee . Accordingly the Court directed to refund the amount with the interest with in the period of three weeks from the receipt of the order . (WP No. 2145 & 2172 of 2019 dt11/ 14 -10 2019) (AY.2017-18)
Vodafone Idea Ltd. v. Dy. CIT (2019) 311 CTR 385 / 267 Taxman 603 /( 2020) 421 ITR 253 (Bom.)(HC). Editorial : SLP of revenue was dismissed on the ground of delay , Dy.CIT v. Vodafone Idea Ltd ( 2021 )) 283 Taxman 272/ 283 Taxman 8 (SC)
S.241A: Withholding of refund in certain cases – Declaring the loss cannot be the ground to doubt the contents of the return or the loss suffered by the assessee – Directed to refund the amount with the interest with in the period of three weeks from the receipt of the order . [ S.143(ID), 197, Art .226 ]