RAJU BABU Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE contention of the petitioners is that as a result of the order of the Commissioner of Income-tax (Appeals) refund had become due to them but no refund has been given by the respondents on the pretext that appeal against the order of the Commissioner of Income-tax (Appeals) is pending before the Income-tax Appellate Tribunal. Counsel for the petitioners urges that there being no stay order by the Income-tax Appellate Tribunal, the petitioners are entitled to immediate refund.

(2.) THE contention of learned standing counsel is that under Section 241 of the Income-tax Act, 1961, the Chief Commissioner or the Commissioner is empowered to withhold the refund depending upon the facts and circumstances as stated therein and in the exercise of that power an order dated September 9, 1992, was passed by the Commissioner of Income-tax, Agra, withholding the refund which has been communicated by the impugned order dated September 17, 1992 (annexure-4 to the petition).