The Delhi High Court (DHC) sets aside the order of the Revenue Department that withheld the refund of around Rs. 33 Crore due to the Assessee, OYO Hotels, after refund intimation had been received, because the Assessee was selected for scrutiny assessment and a notice had been issued by the Assessing Officer (AO). The Court noted that the AO failed to provide compelling reasons as to why releasing the refund will adversely affect the interest of the Revenue and observed that mere issuance of scrutiny notice is not a sufficient ground to withhold the refund under the Income Tax Act, 1961.
