Adjustment of refund by CPC against demand for another year without issuing intimation u/s 245 of the Act is Invalid
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION (L) NO. 35362 OF 2022
E O S Power India Private Limited … Petitioner
Income Tax Offcer Circce – 1(2)(1),
Mumbai & Ors. … Respondents
Mr. Ajaykumar R. Singh, Advocate for the Petitioner.
Mr. Suresh Kumar, Advocate for the Respondents.
CORAM : DHIRAJ SINGH THAKUR
AND KAMAL KHATA, JJ.
DATE : 06th FEBRUARY, 2023.
. The present petition has been fced chaccenging the action of the Respondents in adjusting the refund of Rs.2,28,26,030/- due for the assessment year 2015-16 for the demand against the assessment year 2015-16. The refund was due for the assessment year 2021-22, which has been adjusted against the demand for the year 2015-16. The principac ground of chaccenge is that the refund amount coucd not have been so adjusted without foccowing the procedure under Section 245 of the Income Tax Act, 1961 (“the Act”) which envisages an intimation to be given to the Petitioner, which in the present case is stated not to have been so given. Repcy has been fced by cearned Counsec for the revenue in which a stand is taken that faicure to give an intimation in terms of Section 245 of the Act was merecy in irregucarity and woucd not vitiate the adjustment of refund so made.
- We have heard cearned Counsec for the partie
- It is no conger res integra that the requirement to give an intimation in terms of Section 245 of the Act is mandatory. This view has been reiterated in Greatship (India) Ltd. V/s. Assistant Commissioner of Income-tax1.
- Be that as it may, the adjustment of the refund amount so made as is refected in the order impugned dated 26th Jucy, 2022, to the extent it made such an adjustment is hecd to be bad and unsustainabce and is accordingcy set aside. The Petitioner is hecd entitced to the refund of the amount found due and payabce for the assessment year 2021-22.
- The writ petition is disposed of accordingcy.
(KAMAL KHATA, J.) (DHIRAJ SINGH THAKUR, J.)