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December 2025

Refund — First appellate order in favour of the assessee —However, directions given in the order to make enquiry and verify in respect of other years by resorting to S. 148 — Refund cannot be held merely because enquiry and verification is pending — Once the assessee succeeds in appeal consequence of order giving effect and grant of refund should follow — Directions issued to the AO to pass order giving effect to the order of the CIT(A) and grant refund along with interest u/s. 244A of the Act.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 5 mins

50. 2025 (11) TMI 50 (Bom.)

U.S. Instruments Pvt. Ltd. vs. ACIT and Ors

A. Y. 2009-10: Date of order 15/10/2025

Ss. 153 and 244A of ITA 1961

Refund — First appellate order in favour of the assessee —However, directions given in the order to make enquiry and verify in respect of other years by resorting to S. 148 — Refund cannot be held merely because enquiry and verification is pending — Once the assessee succeeds in appeal consequence of order giving effect and grant of refund should follow — Directions issued to the AO to pass order giving effect to the order of the CIT(A) and grant refund along with interest u/s. 244A of the Act.

The assessee is a private limited company. The assessment for A.Y. 2009-10 was completed vide order dated 28/12/2011 passed u/s. 143(3) of the Act after making addition on account of securities premium u/s. 68 of the Act and a demand of ₹15,53,73,190 was raised. Against the said order, the assessee filed an appeal before the CIT(A) which was disposed by the CIT(A) vide order dated 19/02/2024 and the appeal of the assessee was allowed. However, the CIT(A), in his order issued directions for examining the nature and source of amounts receive

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Re-assessment — Information available on Insight Portal — Incorrect information — Mechanism u/s. 148A — Requirement to verify information u/s. 148A(a) prior to 01/09/2024 — After the amendment, 148(1) is similar to 148A(b) — Despite the amendment, it is the responsibility of the AO to verify information available on insight portal — AO must conduct enquiry, if necessary 148A(1) to be invoked only after verification of the information made available to the AO.

Refund — Rejection of application on the ground that request can be made only through TRACES portal and further there is no provision to adjust outstanding demand against refund on TRACES portal — Unjustified — Income-tax authorities bound to refund the amount without any formalities to be completed by the assessee — Non-functionality of portal cannot be the ground for denying the refund statutorily allowed to the assessee — AO directed to either grant refund or set-off the demand payable against the refund.