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2017 (3) TMI 1336 - HC - Income TaxAdjustment of amount refundable for the Assessment Year 2012-13 against the tax demands raised for the Assessment Years 2013-14 and 2014-15 - Held that:- In respect of an argument that demand for the Assessment Year 2013-14 was stayed by the Assessing Officer in exercise of powers conferred under Section 220(6) of the Act, we do not find any merit. A perusal of the order of stay passed by the Assessing Officer on 12.09.2016 in terms of Section 220(6) of the Act shows that even in the said order, an amount of ₹ 144,08,49,460/- has been adjusted. After adjustment, the balance amount was stayed for a period of 6 months or upto the decision of the first appeal, whichever is earlier. After passing of such order, the assessment for the Assessment Year 2014-15 was finalized on 28.12.2016. The order under Section 220(6) of the Act as well as the intimation under Section 245 of the Act was issued by the same Assessing Officer. Therefore, the argument of the learned counsel for the petitioner that the Assessing Officer should have modified its order of 12.09.2016 before the order of adjustment is not tenable as the order of stay was not passed by any other superior authority but by the Assessing Officer himself. Quashing of the order results in restoration of the position as stood on the date of passing of the order which has been quashed but the stay of operation of the order does not however lead to such a result. In view thereof, the order of Assessing Officer not to recover the demand for the Assessment Year does not lead to setting aside of the demand itself. The said demand could very well be adjusted against the refund due for the previous year 2012-13. Section 245 of the Act infact permits the Revenue to set off any demand from the amount to be refunded but the only condition is of intimation in writing to such person against whom action is proposed to be taken. We find that demand having been raised against the petitioner for the Assessment Years 2013-14 and 2014-15 and intimation having been sent to the petitioner on 05.01.2017, the mandate of Section 245 of the Act was satisfied by the Revenue before making adjustment from the refund due to the assessee from the tax due to the assessee for the subsequent years. In view thereof, we do not find any merit in the writ petition, the same is dismissed.
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