1987-VIL-484-P&H-DT

Equivalent Citation: [1988] 169 ITR 322, 33 TAXMANN 116

PUNJAB AND HARYANA HIGH COURT

Date: 13.04.1987

HANSA AGENCIES PRIVATE LIMITED

Vs

COMMISSIONER OF INCOME-TAX AND ANOTHER

BENCH

Judge(s)  : M. S. LIBERHAN., H. N. SETH 

JUDGMENT

Income-tax assessments of the petitioner, Messrs. Hansa Agencies Private Ltd., Jalandhar, for the assessment years 1979-80 and 1981-82 were completed on July 31, 1982, and May 26, 1984, respectively. Eventually, the assessment for the year 1979-80 was annulled by the Income-tax Appellate Tribunal, vide its order dated May 6, 1985, and that for the assessment year 1981-82 was annulled by the Commissioner of Income-tax (Appeals), vide his order dated May 31, 1985. Dissatisfied, the Revenue questioned the validity of the order of the Income-tax Appellate Tribunal annulling the assessment for the year 1979-80 by means of a reference under section 256(1) of the Income-tax Act, which proceedings are pending before the High Court. It has also questioned the validity of the order of the Commissioner of Income-tax (Appeals) annulling the petitioner's assessment for the assessment year 1981-82 by means of an appeal, which is pending before the Income-tax Appellate Tribunal.

As a result of the annulment of the assessments, the petitioner, under section 240 of the Income-tax Act, became entitled to the refund of the income-tax paid by it for the assessment years 1979-80 and 1981-82. The petitioner, vide its application dated August 4, 1985, made a claim before the assessing authority for the refund of the income-tax deposited by it for the two assessment years. According to the petitioner, the assessing authority informed it that the said refund had, with the prior approval of the Commissioner of Income-tax, been withheld by it under section 241 of the Income-tax Act. Aggrieved, the petitioner has approached this court for relief under article 226 of the Constitution.

This petition was heard along with Writ Petition No. 4378 of 1986 (Leader Valves P. Ltd. v. CIT [1987] 167 ITR 542). Even though the respondents did not file any return in the case, Shri Ashok Bhan, learned counsel for the respondents, stated before us that, as in the case of Leader Valves Private Ltd. [1987] 167 ITR 542 (Writ Petition No. 4378 of 1986), in this case also, the assessing authority has withheld the refund merely for the reason that the order of the Income-tax Appellate Tribunal annulling the petitioner's assessment for the year 1979-80 and that made by the Commissioner of Income-tax in respect of the petitioner's assessment for the year 1981-82 are erroneous and the proceedings initiated by the Department questioning the correctness of the two orders are still pending before the High Court and the Income-tax Appellate Tribunal.

For the reasons given by us in our judgment in Writ Petition No. 4378 of 1986 (Leader Valves Private Ltd. v. CIT [1987] 167 ITR 542) rendered today, we are of the opinion that the assessing authority is not justified in withholding the refund which had become due to the petitioner as a result of the annulment of the assessments merely for the reason that the proceedings questioning the validity of the two orders annulling the assessments for the years 1979-80 and 1981-82 are pending before the appropriate authorities. The petition, therefore, succeeds and is allowed and the respondents are directed not to withhold the refund of income-tax which has become due to the petitioner as a result of the annulment of its assessments for the years 1979-80 and 1981-82 on the ground that the proceedings questioning the validity of the two orders annulling the assessments are pending before the High Court and the Income-tax Appellate Tribunal respectively.

 

 

 

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