9911796707
TMI Blog2025 (5) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent. 2. The Petitioner has filed this petition under Articles 226 and 227 of the Constitution of India and has prayed as under:- "(a) quash and set aside the impugned penalty order passed under Section 271 (1) (c) and notice of demand issued under Section 156 of the Act. (b) quash and set aside the impugned intimation issued under Section 245 of the Act. (c) Direct the Respondent to grant refund for A.Y. 2021-22 which has, inter alia, erroneously been proposed to be adjusted against impugned penalty order. (d) pending the admission, hearing and final disposal of this Petition, to stay further recovery/ adjustment against the demand of penalty order of A.Y. 2014-2015." 3. The brief facts of the case are as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent No. 2 issued a penalty show cause notice under Section 274 read with section 271 (1) (c) of the Act. The Petitioner again filed a reply dated 02.03.2021 to keep the penalty proceedings in abeyance till the appeal disposed off by the Tribunal. By letter dated 11.05.2021, the Respondent No. 2 sought various details from the petitioner which were submitted by the Petitioner by Reply dated 15.05.2021 along with requisite documents with a reiteration of the request to keep the penalty proceedings in abeyance till the disposal of the Appeal by the Tribunal. It is the case of the Petitioner that no intimation was received with regard to the penalty proceeding being kept in abeyance as per the request of the Petitioner. The Petitioner therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CPC adjusted the refund due for AY 2021-22 against the demand for AY 2013-14 and AY 2014-15 from 28.04.2022 and net refund of Rs. 9,13,58,384/- was released to the Petitioner on 28.04.2022 as under:- Total Refund Amount Adjusted amount Adjusted demand AY DIN Demand Status Section Taxpays/Responds AD Response 2335979260 33194880 2013-2014 2021201340407582592C Demand 271(1)(c) No Response (R feed) No Response 663896 2013-2014 2022201337065273534C INT Demand 220 (2) No Response No Response 221076210 2014-2015 2021201440409351520C Demand 271(1)(c) No Response (R feed) No Response 91358384 Net Refund As the Petitioner did not receive any penalty order or demand notice under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted by the Learned Advocate Mr. Sanghani that from the order sheet it appears that after the receipt of the review report on 21.03.2022, final penalty order was submitted for approval and the same was also approved on 21.03.2022 and the demand notice were generated under Section 156 of the Act along with computation Sheet. It was submitted that thereafter there is no order sheet entry and it is not possible for the respondent and there is nothing either on the portal or appeal filed by the Respondent to show that the draft order for levy of penalty was communicated to the Petitioner as per the provisions of Section 144B of the Act or any final order was communicated to the Petitioner. The reliance was placed on additional affidavit fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for as required under Section 144B of the Act. It is also not in dispute that no final order for levy of penalty was ever generated or communicated alongwith demand notice under Section 156 of the Act. Therefore, subsequent action on the part of the Respondent to communicate such demand as per the order sheet entry dated 21.03.2022 to the CPC which on the basis of the automatic system adjusted the refund for AY 2021-22, is illegal and without any basis. Accordingly, the adjustment of refund by the CPC through the Communication issued under Section 245 of the Act for AY 2021-22 is hereby quashed and set aside and the matter is remanded back to the Respondent Nos. 1 and 2 to complete with the procedure prescribed under Section 144B of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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