9911796707
TMI Blog2025 (5) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... immediately process and release the refund sum of Rs. 07,04,39,948/- for AY 2014-15 adjusted against the disputed demand for AY 2016-17 in an illegal and arbitrary manner, along with statutory interest under Sections 244A and 244A (1A) of the Act from the date it became due until the date of actual payment; b) any other order, relief or direction, which this Hon'ble High Court deem fit & proper be passed in favour of the Petitioner." 2. The Assessee impugns the intimation/order dated 16.02.2024 issued under Section 245 of the Income Tax Act, 1961 [The Act], whereby a refund of Rs. 7,04,39,948/- due to the Assessee for Assessment Year [AY] 2014-15 was set-off against an outstanding demand of Rs. 4,62,40,148/- (that is Rs. 4,91,67,767/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsuant to the said order, the AO passed a fresh assessment order dated 13.12.2019 under Section 143 (3) read with Section 263 of the Act, enhancing the assessed income to Rs. 81,07,76,020/-. 5. The Assessee appealed the order dated 29.03.2019 passed under Section 263 of the Act before the learned Income Tax Appellate Tribunal [ITAT] [being ITA No. 3707/Del/2019], the same was allowed by an order dated 09.06.2023 and the PCIT's order dated 29.03.2019 was set aside. Consequently, the assessment order dated 13.12.2019 did not survive. In the meanwhile, pursuant to the assessment order, the Assessee deposited a sum of Rs. 8,24,34,656/-. 6. Thereafter, the AO passed an appeal effect order dated 02.01.2024 to give effect to the learned ITAT's o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f only Rs. 69,05,933/- [Rs. 98,33,553/- being 20% of the disputed demand of Rs. 4,91,67,767/- less an amount of Rs. 29,27,619/- already recovered] could be further recovered on account of disputed demand for AY 2016-17 from the refund due in respect of AY 2014-15. In the aforesaid circumstances, the Assessee claims that it ought to have been refunded an amount of Rs. 8,50,98,367/-. 9. As against the aforesaid amount, the AO has adjusted the entire outstanding disputed demand of Rs. 4,91,67,767/- along with statutory interest amounting to Rs. 3,11,05,731/- in respect of AY 2016-17. The said amount has been recovered by adjusting the refund of Rs. 29,27,619/- in respect of AY 2015-16 and a sum of Rs. 7,73,45,879/- from the refund due in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be made by the assessee as a pre-condition for stay of demand disputed before CIT (A), the following modified guidelines are being issued in partial modification of Instruction No. 1914: (A) In a case where the outstanding demand is disputed before CIT (A), the assessing officer shall grant stay of demand till disposal of first appeal on payment of 15% of the disputed demand, unless the case falls in the category discussed in para (B) hereunder." 13. It is clear from the language of the Office Memorandum that the instructions contained therein were issued to streamline the process of grant of stay and to standardise the quantum, lump sum payment required to be paid by the assessee "as a pre-condition for stay of demand disputed bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tstanding demand cannot be adjusted from the refund of these two years. 2. There was suggestion in your letter for adjustment of refund of AY 2015-16 as well. Refund of Rs. 29,27,620/- had arisen in this year after order u/s 154 dt. 19.02.2019 and it was adjusted. So, there was collection of Rs. 29,27,620/- only. Balance recoverable demand comes to Rs. 69,05,933/-. Under these circumstances, you are hereby requested to please pay the demand immediately. Your faithfully, s/d (V.R. SONBHADRA) Addl. Commissioner of Income-tax Special Range-2, New Delhi" 16. Admittedly, the petitioner had not deposited a sum of Rs. 69,05,933/- for fulfilling the condition of 20% deposit of Rs. 4,91,67,767/- at the material time. 17. In view of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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