M/S FIS PAYMENT SOLUTIONS & SERVICES INDIA PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX-9(1) AND ANR.

The present writ petition under Articles 226/227 of the Constitution of India, has been instituted on behalf of M/s FIS Payment Solutions & Services India Private Limited, the petitioner herein, praying as follows:

It is observed that this is the second round of litigation between the parties qua the refund of tax, which the petitioner claims to be entitled to, in relation to the Assessment Year 2018-19. 3. In the earlier round where similar relief was prayed for, a Coordinate Bench of this Court in writ petition being W.P. (C) 2243/2020 titled as ‘M/s. FIS Payment Solutions & Services India Private Limited vs. Deputy Commissioner of Income Tax-9(1) & Anr.’, on 03.03.2020, was pleased to pass the following order:- “Issue notice. Mr. Bhatia accepts notice. The petitioner seeks refund of the tax from the respondents. In relation to the Assessment Year 2017- 18, the petitioner’s assessment has been completed under Section 143(3) of the Income Tax Act. So far as the Assessment Year 2018-19 is concerned, the petitioner’s return, as filed, has been processed under Section 143(1) of the Income Tax Act. The amount due towards refund for both the assessment years is substantial. Prima-facie, it appears that there is no justification for the respondents not granting the refund when the same is due. We, therefore, direct the respondents to refund the amounts for both the assessment years along with

On the very same day, vide order dated 03.03.2020, a proposal was made by the Assessing Officer to withhold the subject refund, pending completion of scrutiny assessment proceedings for the Assessment Year 2018-19 under the provisions of Section 143 (3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the said Act’). 5. The Principal Commissioner of Income Tax-3 vide order dated 09.03.2020 granted approval for withholding of the refund for the Assessment Year 2018-19 under section 241A of the said Act. 6. The limited relief prayed for on behalf of the petitioner in these proceedings is that the orders impugned in these proceedings are in the teeth of the guidelines enunciated by this Court in Mapel Logistics Pvt. Ltd. vs. Principal Commissioner of Income Tax, reported as

Having heard learned counsel appearing on behalf of the parties and in view of the guidelines in Mapel Logistics (supra), as well as, the directions contained in the said order dated 03.03.2020 rendered by the Coordinate Bench, we allow the present petition and remit the matter back to the Assessing Officer to pass a fresh speaking order, after affording an opportunity of being heard to the petitioner and further permitting them to place on record the additional affidavit dated 01.06.2020, filed before this Court, in accordance with law, within a period of six weeks from today. 8. No further directions are called for. 9. With the above direction, the present petition is disposed of. The pending application also stands disposed of. 10. A copy of this judgment be provided electronically to the learned counsel for the parties and be also uploaded on the website of this Court forthwith.