TMI Blog2022 (7) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... n intimation in writing, to such person of the action proposed to be taken under this section. In the present case, it can be seen that the allegation that there was no prior intimation under section 245 of the Act has remained unrebutted as no proof of any such prior intimation was placed on record by the Revenue - thus the impugned action of respondent No.2 in making, adjustments of the amount for assessment year 2008-09 against the alleged outstanding, demands for assessment years 2014-15 and 2015-16 is bad and illegal and is accordingly quashed. Notwithstanding, what has been observed hereinabove, it would be open to respondent No.2 to exercise its discretion of making, an adjustment in terms of section 245 after giving, prior int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008-09 against the alleged outstanding, demand for the assessment year 2015-16. Knowledge of this illegal adjustment was also stated to have been acquired by the petitioner on November 17, 2021 when the petitioner downloaded the Form No.26AS. 4. Learned counsel for the petitioner urged that the action of respondent No.2 in making, adjustments of refund due was illegal inasmuch as no intimation was given to the petitioner as was the requirement in terms of section 245 of the Income Tax Act, 1961 ( the Act, 1961 ). 5. Reliance was placed upon the judgments of this Court in the case of A.N. Shaikh, Sixteen Income-Tax Officer Vs. Suresh B. Jain [1987] 165 ITR 86 (Bom.) and Hindustan Unilever Ltd. Vs. Deputy Commissioner of Income-Tax a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal which would not warrant an adjustment of the refund against the pending, demand. It was also held that where a party raises such issues in response to the intimation, the officer of the Revenue exercising, powers under section 245 of the Act, 1961 must record reasons why the objection was not sustainable and also communicate it to the said party and that this would ensure that the power of adjustment under section 245 of the Act is not exercised arbitrarily. 9. In the present case, it can be seen that the allegation that there was no prior intimation under section 245 of the Act has remained unrebutted as no proof of any such prior intimation was placed on record by the Revenue. Following, the decisions (supra), we have no hesita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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