Mere issuance of assessment notice insufficient grounds to deny tax refund:
The Delhi High Court held that a refund cannot be denied merely because taxpayer’s case is selected for scrutiny assessment or where an assessment notice has been issued. The Assessing Officer (AO) is required to give detailed and compelling reasons in writing as to how the release of the refund will adversely affect the interest of the tax authority. The case is: Oyo Hotels and Homes Private Limited v. DACIT. Read an April 2023 report [PDF 385 KB]