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Trueblue India Llp vs Deputy Commissioner Of Income Tax ... on 2 June, 2022

Author: Manmohan

Bench: Manmohan, Manmeet Pritam Singh Arora

                              $~2
                              *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +     W.P.(C) 8442/2022
                                    TRUEBLUE INDIA LLP                                     ..... Petitioner
                                                        Through:     Mr.Salil Kapoor with Ms.Ananya
                                                                     Kapoor, Advocates.

                                                        versus


                                    DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 43-1 &
                                    ORS.                                   ..... Respondents
                                                Through: Mr.Sunil Kumar Agarwal, senior
                                                         standing counsel for the Revenue with
                                                         Mr. Tushar Gupta and Mr. Utkarsh
                                                         Tiwari, Advocates.

                              CORAM:
                              HON'BLE MR. JUSTICE MANMOHAN
                              HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
                                                        ORDER

% 02.06.2022 C.M.No.25467/2022 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of.

Today Mr.Sunil Kumar Agarwal, learned standing counsel for the respondents-revenue has shared the email dated 31st May, 2022 written to him by the Jurisdictional Assessing Officer along with some of the trail mails from National Faceless Assessment Centre. The relevant portion of the said email and the trail emails, after redacting Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:03.06.2022 18:32:19 the name of the officers in question, is reproduced hereinbelow:-

Email dated 31st May, 2022 "The assessee LLP has claimed huge deduction u/s. 10AA of Rs.10,95,87,033/- and the claim needs to be considered for thorough verification during scrutiny as the case is selected for complete scrutiny involving claim of huge deduction u/s. 10AA with consequent result of refund. The assessee LLP has started a new SEZ during FY.2019-20 with effect from 01.01.2020. The claim of deduction u/s. 10AA in new SEZ along with the income admitted from SEZ unit and non-SEZ unit needs thorough verification in the pending scrutiny assessment proceedings. In view of the facts of case and the assessee's claim of deduction u/s. 10AA is for 1st year the same needs to be considered for invocation of provisions u/s. 241A so as to withhold the refund till completion of pending scrutiny assessment proceedings. The scrutiny assessment proceedings are likely to result in substantial demand consequent to such verification of claim of deduction u/s.10AA as per the provisions of I.T. Act. In view of the comprehensive reasons mentioned above and also in view of provision of section 241A of I.T. Act the claim is considered for withholding of refund u/s. 241A by the Hon'ble Pr. Commissioner of Income Tax, xxxxxx vide email approval dated 12.04.2022 communicated to the concerned Faceless Assessing Officer (FAO) directing to withhold refund u/s. 241A of the I.T.Act. The copy of detailed email approval granted by Pr. Commissioner of Income Tax, xxxxxxxx is herewith enclosed for kind perusal and placed on record.

In view of the above facts, it is humbly requested to represent the same before the Hon'ble High Court of Delhi not to hold assessee's plea whatsoever in withholding the refund as per the law and as per the provisions of section 241A of I.T.Act as the same is devoid of merit.

Yours faithfully xxxxxxx Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:03.06.2022 18:32:19 Dy. Commissioner of Income Tax"

Email dated 12th April, 2022 "Sir, As requested by the FAO and recommended by the unit head, the PCIT, xxxxxx has accorded permission to withhold the Refund u/s 241A of I.T. Act, 1961 in the cases mentioned in the serial no. 1,2, 5, 7,8 and the remaining cases in the serial no.3, 4, 6, 11, 12 to be released.

Regards, xxxxx ITO (Hqrs)"

Email dated 31st March, 2022 "Sub: 241A approval for CASS cases - assigned to xxxx - Regarding Ref: Mail received on 30.03.2022 from DCIT-2(1), Delhi Kind reference is invited to the above. The cases where refunds are likely to arise have been examined with reference to the reasons for selection of cases for scrutiny and recurring issues on which addition are made. Therefore, the report giving case wise remarks is submitted as under:-

S. AY PAN Assessee Returned Refund/ Remarks No. Name Income Demand xxx xxx xxx xxx xxx xxx xxx

2 2020 AALFT2710M TRUEBLUE 115446730 217730370 In this case INDIA LLP large deduction u/s 10AA claimed by the assessee rejection may result in huge demand hence refund may be withheld.

Learned counsel for the petitioner states that no copy of the order passed under Section 241A of the Income Tax Act, 1961(hereinafter referred to as 'the Act') has been served upon the petitioner till date.

This Court is of the view that it is mandatory on the part of the Revenue to serve a copy of the order passed under Section 241A of the Act on the assessee. Accordingly, this Court directs the respondents-revenue to furnish a copy of the order passed under Section 241A of the Act within two weeks from today.

List on 25th July, 2022.

MANMOHAN, J MANMEET PRITAM SINGH ARORA, J JUNE 2, 2022 KA Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:03.06.2022 18:32:19