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2021 (11) TMI 1158 - HC - Income TaxRefund claim - adjustment of refund amount against the demand that it has against Petitioner - No intimation u/s 245 of the Act was given before making any adjustment - HELD THAT:- As per this notice dated 01/01/2021 and reminder dated 17/01/2021, it does not relate to any of the 15 refunds mentioned by Petitioner in the Petition. These notices issued by Respondent pertain to Kochi Refineries Limited before Kochi Refineries Limited was merged with Petitioner. Even the outstanding demand table annexed to the said notice dated 01/01/2021 does not pertain to any of the 15 refunds to be given to Petitioner as stated in the Petition. Therefore, our answer to Issue No.(i) is in negative, the notice as required under Section 245 of the Act has not been given. Effect of failure to give such notice, it is settled law that non-giving of intimation in writing prior to setting off of the amount payable against the amount to be refunded is fatal. This Court, in Jet Privilege Private Limited [2021 (8) TMI 593 - BOMBAY HIGH COURT] has held that the requirement of prior intimation under Section 245 of the Act was a mandatory requirement and failure to comply with this mandatory requirement of prior intimation would make the entire adjustment as wholly illegal and therefore Respondents could not have made the adjustment as they wanted to. Thus answering Issue Petitioner will be entitled to the refund of the entire amount together with accumulated interest, if any, in accordance with law. This refund shall be given within 6 weeks from today.
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