On writ allowing the petition the Court held, that refund could not have been withheld just because a notice under section\u00a0143(2)\u00a0had been issued for verification of the assessee\u2019s claim for deduction under section\u00a010AA. The order passed under section\u00a0241A\u00a0against the assessee was a generic order and no attempt had been made by the respondents to substantiate how the grant of the refund was likely to adversely affect the Department. Therefore, the order passed under section\u00a0241A\u00a0was quashed and the matter was remanded back to the Assistant Commissioner. The assessee was entitled to refund with interest till the date of refund of the amount withheld except for the tax payable on the disputed amount (of claim for deduction under section\u00a010AA) under section\u00a0115JB\u00a0and under the normal provisions of the Act. Accordingly, the Assistant Commissioner was directed to pass a fresh order under section\u00a0244A. (AY.2020-21)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 241A : Refunds-Withholding of refund in certain cases-Mere issue of notice under Section 143(2) not a ground for withholding refund-Entitled to refund with interest till date of refund of amount withheld except tax payable on disputed amount. [S. 10AA, 115JB, 143(2), 241(1), Art.226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31037","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-84B","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=31037"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31037\/revisions"}],"predecessor-version":[{"id":32471,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31037\/revisions\/32471"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=31037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=31037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=31037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}