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2022 (7) TMI 905 - HC - Income TaxAdjustment of refund against outstanding demand - mandation of prior intimation under section 245 - HELD THAT:- Section 245 of the Act, 1961 envisages that when a refund is found to be due to any person under any of the provisions of the Act, 1961, the Revenue can set off/adjust the amount to be refunded or any part of that amount, against the sum which remains payable under the Act, 1961 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 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 intimation and considering, all the issues and objections which the petitioner may raise pursuant to such an intimation. Needful may be done in eight weeks failing, which the case of the petitioner will be processed for ,rant of refund as determined for the assessment year 2008-09.
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