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2022 (3) TMI 1040 - HC - Income TaxSet off of refunds against tax remaining payable - issuance of statutory intimation required under Section 245 of I.T Act - whether adjustment for those refunds due to the petitioner could be made against the relevant years on merits? - HELD THAT:- As an offshoot of the aforesaid discussions, it is clear that adjustments have been made by the department for assessment years 2014-15, 2015-16 without any intimation and that too within 30 days of the intimation for the assessment year 2016-17. There has been no intimation for adjustment of refund due for the assessment year 2005-06, 2006- 07 and 2007-08 against outstanding demand of the year 2014-15. We have consciously refrained from commenting upon merits of the case of the parties as regards to what extent such adjustments would be made even after intimation. The case is being decided only on the narrow point of lack of intimation under Section 245 of the I.T. Act. The respondents are not empowered to adjust the refund amount automatically without complying the provisions of Section 245 of the Act. Adjustment made against the refund due to the petitioner for the relevant year therefore have to be set aside. Accordingly, they are set aside. However, department is at liberty to act in accordance with law after due intimation and opportunity to file response, as contemplated under Section 245 of the I.T. Act for undertaking adjustment against any refund admissible to the petitioner for any assessment year against the outstanding demand for relevant assessment years. Accordingly, the writ petitions are allowed in the manner and to the extent indicated hereinabove.
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