2021 (6) TMI 1075 - HC - Income Tax

Adjustments qua refunds - grant extension for filing the court-fee and notarised affidavits along with the present petition - HELD THAT - PCIT will deliberate and deal with the petitioner s communications dated 14.01.2021 26.02.2021 and 10.03.2021. The PCIT will pass a speaking order after according a hearing to the authorised representative of the petitioner. List the matter on 03.08.2021. In the meanwhile the respondents/revenue will maintain status quo with regard to the future adjustments qua refunds if any available to the petitioner till the next date of hearing. It is made clear that notwithstanding this direction the plea made in the aforementioned communications addressed to the PCIT concerning adjustment of future refunds if any being made available to the petitioner will be dealt with by the PCIT.

Summary

Issues Involved:
1. Grant of extension for filing court-fee and notarised affidavits.
2. Adjustment of refund against disputed demand for a specific assessment year.
3. Compliance with guidelines for adjustment of refunds.
4. Communication and requests for course correction to the Principal Commissioner of Income Tax.
5. Future adjustments of refunds and maintenance of status quo by the revenue department.

Issue 1: Grant of Extension for Filing Court-Fee and Notarised Affidavits
In the case, an application was made seeking an extension for filing court-fee and notarised affidavits. The court granted the application subject to exceptions, directing the petitioner to submit the required documents within three days from the resumption of normal court operations.

Issue 2: Adjustment of Refund Against Disputed Demand
The petitioner was aggrieved as their refund for the assessment year 2019-2020 was adjusted against a disputed demand for the assessment year 2017-2018. The petitioner contended that the adjustment exceeded the permissible limit of 20% as per guidelines from the Central Board of Direct Taxes. The court issued notice on this matter.

Issue 3: Compliance with Guidelines for Refund Adjustments
The petitioner had previously communicated with the Principal Commissioner of Income Tax regarding the adjustment issue through letters on specific dates. The court directed the Principal Commissioner to review these communications and pass a speaking order after hearing the petitioner's representative.

Issue 4: Communication and Requests for Course Correction
The petitioner had made multiple requests for course correction through formal communications to the Principal Commissioner. The court acknowledged these communications and directed the Principal Commissioner to address the concerns raised by the petitioner and provide a resolution after a hearing.

Issue 5: Future Adjustments of Refunds and Maintenance of Status Quo
The court ordered the revenue department to maintain the status quo regarding future adjustments of refunds available to the petitioner until the next hearing date. It was clarified that any requests made by the petitioner regarding adjustments of future refunds would be handled by the Principal Commissioner.

This comprehensive analysis of the judgment highlights the key issues addressed by the court and the directives provided to the parties involved in the case.