Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 746 - HC - Income TaxViolation of principles of natural justice – Opportunity of being heard not provided – Mandatory requirement u/s 245 not fulfilled - Adjustment of refund against outstanding penalty demand – Held that:- As decided in Glaxo Smith Kline Asia (P.) Ltd v. CIT [2007 (1) TMI 113 - DELHI High Court] - before invoking the power u/s 245, the officer is expected to give an intimation in writing to the assessee to whom the refund is due informing him of the action proposed to be taken under the section - On the same date on which the intimation was issued the adjustment was made simultaneously - This is contrary to the spirit of the provisions of Section 245 inasmuch as no opportunity of hearing was given to the assessee before the adjustment was made - Therefore, on this ground alone the adjustment order is to be quashed – Decided in favour of assessee.
|