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2023 (7) TMI 32 - HC - Income TaxUnlawfull adjustment of refund admittedly due against the demand for this AY without prior intimation u/s 254 - stay as granted ignored - HELD THAT:- When stay is granted it would continue till the disposal of the Appeal and not only for a period of six months u/s 220(6) of the ITA. This Court in the case of Hindustan Unilever Ltd. [2015 (7) TMI 366 - BOMBAY HIGH COURT] held that in view of the stay u/s 220(6) of the Act, the time to make the payment stands extended till the disposal of the appeal by CIT (Appeals). Non-giving of intimation in writing prior to setting off the amount payable against the amount to be refunded is fatal. This Court in Jet Privilege (P) Ltd. [2021 (8) TMI 593 - BOMBAY HIGH COURT] and BPCL [2021 (11) TMI 1158 - BOMBAY HIGH COURT] held that the requirement of prior intimation u/s 245 of the ITA was a mandatory requirement and failure to comply with this mandatory requirement of prior intimation would make the entire adjustment wholly illegal. Order: - The adjustment for AY 2021-22 against the demand for AY 2015-16 & 2016-17 and adjustment for AY 2017-18 against the demand for AY 2016-17 are quashed and set aside and refund or such additional amount as may have been determined be paid to the Petitioner within two weeks from the receipt of the order along with interest thereon u/s 244A up to the date that payment is received.
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