Section - 241A - Processing of return within the prescribed time and
enable withholding of refund in certain cases -
Under the existing provisions of
section 143(1D) processing of returns shall not be necessary where a notice has
been issued to the assessee under section 143(2). With effect from assessment
year 2017-18 however, such processing has been made necessary before passing an
assessment order. In order to address the grievance of delay in issuance of refund in genuine cases
routinely selected for a scrutiny it is proposed that the section 143(1D) shall
cease to apply in respect of returns for assessment year 2017-18 onwards.
In order to ensure recovery in
doubtful cases, a new section 241A is proposed to be inserted to provide that
for returns relating to assessment year 2017-18 onwards where refund of any
amount becomes due to the assessee under section 143(1) and the assessing
officer is of the opinion that grant of refund may adversely affect the
recovery, he may after recording reasons and with the previous approval of the
Principal Commissioner or Commissioner, he may withhold the refund upto the
date of assessment.
The amendment will be effective
from 1st April 2017 in relation to assessment year 2017-18 onwards.