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The Tax Publishers Vijay Singh Kadan v Chief CIT & Anr. [W.P.(C) No. 683/2016, dt. 25-4-2016] : 2016 TaxPub(DT) 2069 (Del-HC) Scope of section 245 *Facts:* Assessees capital gains was questioned in the said assessment year. Thus approx. Rs. 1.45 crores excluding interest was demanded by assessee which was paid. Subsequently the assessee won his case in appeal. The refund due to the assessee had swelled to Rs. 1.65 crores. This was not paid by the dept. which prompted the assessee to remind them more than once, then filed a writ. The writ was decided in favour of the assessee. Subsequently in confirmation of action to the writ a refund for Rs. 1.29 crores was credited to the assessees bank a/c after holding back Rs. 36.30 lakhs under section 245 for assessment year 2008-09/2010-11. Subsequently when asked the dept. show caused after 2 months of the refund as to why the amount should not be withheld under section 245 for subsequent asst. year demands. Aggreived assessee went in writ: Held in favour of the assessee that the power under section 245 requires prior intimation and show causing not post facto. The amounts due will need to be refunded before 9-5-2016 with interest. For the said asst. years since the cases are already in appeals no co-ercive action will be taken by the dept. and in the event the dept. does not adhere to this the assessee to report to the court for due redressal.

The Tax Publishers

Vijay Singh Kadan v Chief CIT & Anr. [W.P.(C) No. 683/2016, dt. 25-4-2016] : 2016 TaxPub(DT) 2069 (Del-HC)

Scope of section 245

Facts:

Assessees capital gains was questioned in the said assessment year. Thus approx. Rs. 1.45 crores excluding interest was demanded by assessee which was paid. Subsequently the assessee won his case in appeal. The refund due to the assessee had swelled to Rs. 1.65 crores. This was not paid by the dept. which prompted the assessee to remind them more than once, then filed a writ. The writ was decided in favour of the assessee. Subsequently in confirmation of action to the writ a refund for Rs. 1.29 crores was credited to the assessees bank a/c after holding back Rs. 36.30 lakhs under section 245 for assessment year 2008-09/2010-11. Subsequently when asked the dept. show caused after 2 months of the refund as to why the amount should not be withheld under section 245 for subsequent asst. year demands. Aggreived assessee went in writ:

Held in favour of the assessee that the power under section 245 requires prior intimation and show causing not post facto. The amounts due will need to be refunded before 9-5-2016 with interest. For the said asst. years since the cases are already in appeals no co-ercive action will be taken by the dept. and in the event the dept. does not adhere to this the assessee to report to the court for due redressal.