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2012 (12) TMI 904 - HC - Income TaxRefund adjusted against demand – Adjustment of refund without prior notice or intimation - Demand stayed by order of High Court – Violation of Stay order – Later on Revenue, in respect of a later period, sought to adjust the amounts due to the writ petitioner, by way of refund - Held that:- When an order of stay of recovery in simplistic and absolute terms is passed, it would be improper and inappropriate on the part of the Revenue to recover the demand by way of adjustment. Revenue’s contention is insubstantial & over-reach and circumvent the stay order. Therefore, the impugned adjustment sought to be made by it, was contrary to the Court’s order. Violation of provision of Section 245 - Procedure to set off amounts due to an assessee from the demands pending against him – Held that:- Section 245 is clear in its mandate regarding the requirement of prior intimation in writing to the assessee whose refunds are being adjusted against amounts payable to the Revenue; the assessee has to be given notice, and heard. The revenue clearly did not follow the provision, and give any notice or hearing before making adjustments. Appeal decides in favour of assessee
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