High Court declines to issue mandamus directing TDS refund pending scrutiny u/s 143(2)

High Court declines to direct refund pending scrutiny. Since matter is pending scrutiny before AO exercising the discretion u/s 143(1d) no mandamus can be issued.

ABCAUS Case Law Citation:
ABCAUS 2264 (2018) (03) HC

The assessee had filed the instant writ invoking the extra-ordinary jurisdiction of the Hon’ble High Court under Article 226 of the Constitution seeking refund of TDS paid by the petitioner to the Department.

The case of the petitioner was that the amount paid liable to be refunded in view of the judgment of the Bombay High rejected the reason of the revenue for not processing the  return of  income under section 143(1) of the Income Tax Act, 1961 (the Act) and considering the refund due consequent thereto u/s 143(1d) of the Act. A prayer was made that a mandamus be issued for refund of the TDS deposited.

The respondents Revenue raised an objection with regard to the maintainability of the petition primarily on the ground that the return had been taken for scrutiny assessment and the matter was pending consideration under Section 143(3) of the Act and the petitioner was required to comply with various formalities including furnishing all information under the scrutiny assessment for the year in question and, therefore, according to the Revenue, at this stage indulgence could not be made to exercise extra-ordinary jurisdiction of this Court when the matter is pending before the authorities under the scrutiny assessment.

The Hon’ble High Court opined that the matter was pending scrutiny before the competent officer at this stage exercising the discretion under Section 143(1d) of the Income Tax Act, no mandamus could be issued in the matter. The petitioner may approach the competent authority of the department furnishing all information and we direct the department to complete the scrutiny assessment and thereafter proceed to consider the question of refund in accordance with law.

The Hon’ble High Court noted that the petitioner admitted that as and when the refund shall be ordered interest on the same shall be paid in accordance with law so that there may not be any monetary loss to the petitioner.

Taking note of all the circumstances cumulatively at this stage, the Hon’ble High Court declined to interfere into the matter.