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2013 (5) TMI 685 - HC - Income TaxAdjustment of the refund against sum payable by an assessee - whether the respondent is empowered to adjust the refund amount automatically without complying with the provisions of Section 245 - Held that:- It is crystal clear that the AO Deputy Commissioner (Appeals), Commissioner (Appeals) or Chief Commissioner or Commissioner Vin lieu of payment of the refund, set-off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under the Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under that Section. On a perusal of the entire material documents including the impugned order, it is clearly evident that there is no intimation in writing to the petitioner-assessee before making such an adjustment of refund. No doubt, the respondent is empowered to make the adjustment of refund, but the same can be done only in the manner as contemplated under the provisions of the Act. It is conspicuous from the records that there is no intimation in writing to the petitioner before making such adjustment of refund. As the respondent has not followed the procedures prescribed under the provisions of the Act while adjusting the refund amount with the outstanding amount, the impugned order is vitiated in law and is liable to be set aside. The impugned order is set aside - Writ Petition is allowed and the matter is remanded back to the respondent for compliance of Section 245.
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