TMI Blog2021 (8) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... ief with regard to prayer (c), as the Principal Commissioner, Income Tax vide order dated 02nd July, 2021, as reproduced hereinabove, has already granted the said prayer. - W.P.(C) 5819/2021 - - - Dated:- 3-8-2021 - HON'BLE MR. JUSTICE MANMOHAN AND HON'BLE MR. JUSTICE NAVIN CHAWLA Petitioner Through : Mr. Bhuwan Dhoopar, Advocate. Respondents Through : Mr. Zoheb Hossain, standing counsel for the Department/Revenue. JUDGMENT MANMOHAN, J: (Oral) 1. The petition has been heard by way of video conferencing. 2. Present writ petition has been filed with the following prayers:- a) issuance of a writ of certiorari quashing the Impugned Order No.1 dated June 11, 2020 issued by CPC adjusting the entire refund for AY 2019-20 against the disputed demand for AY 2017-18; and b) issuance of a writ of mandamus directing the Respondent No. 1 to refund the amount adjusted in excess of 20% of the disputed demand for AY 2017-18; and c) issuance a writ of mandamus restraining the Respondents No. 1and 2 from further recovery of outstanding tax demand for AY 2017-18 until the disposal of appeal filed by the Petitioner before the Commissioner (Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill pass a speaking order, after according a hearing to the authorised representative of the petitioner. 7. List the matter on 03.08.2021. 8. In the meanwhile, the respondents/revenue will maintain status quo with regard to the future adjustments qua refunds, if any, available to the petitioner, till the next date of hearing. It is made clear that, notwithstanding this direction, the plea made in the aforementioned communications addressed to the PCIT, concerning adjustment of future refunds, if any, being made available to the petitioner, will be dealt with by the PCIT. 4. Today learned counsel for the respondent has screen shared the order dated 02nd July, 2021 passed by the Principal Commissioner, Income Tax, Delhi-1 disposing of the petitioner s representations dated 14th January, 2021, 26th February, 2021 and 10th March, 2021. The relevant portion of the said order reads as under:- 9. Considering the directions of Hon ble Delhi High Court, letter was sent to the assessee on 24.06.2021 and the case is fixed for hearing on 29.06.2021. Shri Gautam Seth (CFO) of the assessee attended the office of the undersigned on 01.07.2021. The case is discussed with him. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Zoheb Hossain, learned standing counsel for the Revenue states that he has only instructions to place on record the order dated 02nd July, 2021, reproduced hereinabove. However, a perusal of the order dated 03rd June, 2021 passed by the learned predecessor Division Bench shows that notice had been accepted by the respondent on the said date of hearing and time to file a counter-affidavit had been given. Since no counter-affidavit has been filed, the request for adjournment is declined. 8. In any event, this Court is of the view that the respondent cannot improve upon or supplement the reasons which have already been given in the adjustment of refund order dated 17th March, 2020 under Section 245 of the Income Tax Act, 1961 (hereinafter referred to as Act ) and order dated 21st December, 2020, by way of a counter-affidavit. Accordingly, the matter is taken up for hearing. 9. At this stage, Mr.Hossain refers to paragraph 4(B) of the office memorandum dated 29th February, 2016 which states that pre-deposit of 20% is not a rule of the thumb and the respondent has the discretion to direct a set off of a higher sum under Section 245 of the Act. Paragraph 4(B) of the office memora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against outstanding demand payable Please refer to the Intimation u/s 245 vide CPC/1920/G8/19672229611 dated 13MAY-20 sent earlier. On careful consideration of your response if any, and material available on record, the refund of ₹ 37951268 determined for the AY 2019-20 as per Intimation dated 21-MAR-20, has been adjusted against outstanding demands in the following manner. Note: Refunds will be issued through ECS mode subject to Bank account validation SLNo. (1). AY (2) Demand Amount (3) DIN (4) Order dated (5) Section (6) Taxpayer s Response (7) Amount of adjustment (8) Remarks (9) 1 2017-18 96876430 2019201737081640974 19-12-2019 143(3) No response for the demand 37951270 Net Amount Refundable 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year till the disposal of the first appeal, the same will be adjusted against the outstanding demand iv. That the undersigned reserves the right to review this order from time to time. 10. Having heard learned counsel for the parties, this Court is of the view that the Government is bound to follow the rules and standards they themselves had set on pain of their action being invalidated. [See: Amrit Singh Ahluwalia vs. State of Punjab Ors. 1975 (3) SCR 82 and Ramana Dayaram Shetty vs. International Airport Authority of India Ors. 1979 SCR (3) 1014]. 11. This Court is also of the view that the office memorandum dated 29th February, 2016 read with office memorandum dated 25th August, 2017 stipulate that the Assessing Officer shall normally grant stay of demand till disposal of the first appeal on payment of 20% of the disputed demand. In the event, the Assessing Officer is of the view that the payment of a lump sum amount higher than 20% is warranted, then the Assessing Officer will have to give reasons to show that the case falls in para 4(B) of the office memorandum dated 29th February, 2016. 12. This Court finds that the order under Section 245 o ..... 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