[2018] 98 taxmann.com 454 (Bombay)

HIGH COURT OF BOMBAY

Nu-Tech Corporate Services Ltd.

v.

Income Tax Officer

Section 156, read with section 237, of the Income-tax Act, 1961 – Notice of demand (Service of notice) – Assessee claimed refund of tax along with interest pertaining to assessment years 1993-94, 1995-96 and 2002-03 – Revenue authorities rejected assessee’s claim on ground that amount of refund had been adjusted against tax demand relating to subsequent assessment years 2003-04 and 2009-10 – Assessee filed instant petition contending that no demand was ever raised in relation to aforesaid assessment years – It was noted that although revenue placed reliance upon copy of notice of demand found in official records, yet there was no evidence on record that such a notice under section 156 had been served on assessee – Thus, there was nothing in records which could attribute knowledge of tax demand to assessee – Whether in view of negligent approach adopted by revenue authorities, impugned order passed by them was to be set aside and a direction was to be issued to grant refund to assessee along with applicable rate of interest – Held, yes [Paras 5,6 and 16] [In favour of assessee]