Sec. 241A of Income Tax Act, 1961—Refund—Mere issuance of notice under Section 143(2) is not good enough to withhold the refund due under Section 143(1)

Facts: Present writ petition has been filed seeking refund of INR 18,90,35,522/- as determined under intimation issued by C.P.C. under Section 143(1) for assessment year 2018-2019 and for setting aside the reason of the AO dated 04th February, 2020 and its approval dated 06th March, 2020 by the PCIT for withholding refund under Section 241A as well as the order dated 01st June, 2020 passed under Section 264 by the office of Principal Commissioner of Income Tax, Delhi.

Held, that order setting aside the reason of the AO dated 04th February, 2020 and its approval dated 06th March, 2020 by the PCIT for withholding refund under Section 241A as well as the order dated 01st June, 2020 passed under Section 264 by the office of Principal Commissioner of Income Tax, Delhi were set aside . Six weeks' time was granted to revenue to re-consider the aspect whether the amount found due to be refunded, or any part thereof, is liable to be withheld under Section 241A in line with the decisions of this Court, as noted above. In the eventuality of the revenue recording any reasons for withholding a part thereof, or the entire amount due for refund to the petitioner under Section 143(1), the reasons thereof as approved by the Principal Commissioner of Income Tax shall be provided to the petitioner forthwith. Needless to state that reasons recorded for withholding of refund under section 241A would only amount to a tentative view and would not come in the way of AO to frame the assessment under Section 143(3). The writ petition is accordingly disposed. - LOUIS DREYFUS COMPANY INDIA PRIVATE LIMITED V/s PR. CIT - [2020] 28 ITCD Online 004 (DEL)