CONSTITUTION OF INDIA, 1950

Article 226 Section 245

Writ - Ex-parte action taken by authority for adjusting the refund against the disputed income tax demand - -

Petitioner sought quashing of ex-parte action taken by authorities under section 245 of the Income Tax Act in adjusting the refund of assessment year 2019-20 with outstanding income-tax demand for assessment year 2017-18. Alternatively, direction was sought for quashing of the said action, to the extent, the same results in recovery in excess of 20% of such total disputed demand. Petitioner submits that, the ex-parte action taken by Revenue authority for adjusting the refund for the assessment year 2019-20 against the disputed income tax demand for assessment year 2017-18 was wholly unjustified and without jurisdiction, as it was passed without affording an opportunity of hearing to the Petitioner. In stay application preferred by the Petitioner, authority granted stay of balance income-tax demand for assessment year 2017-18 till 30-9-2020 or till the disposal of appeal by CIT(A), whichever was earlier, subject to the Petitioner cumulatively depositing 15% of the total income tax demand. Held: Once the appeal was decided and in case any tax refund becomes due to the Petitioner, the same should be expeditiously dealt with. Accordingly, having considered the entire conspectus of the case, instead of issuing the directions as sought for, it would be in fitness of things that, the pending appeal of the Petitioner before CIT(A) was disposed of in a time-bound manner and directed CIT(A) to decide the pending Appeal within a period of two months.

REFERRED :

FAVOUR : Directions issued

A.Y. :

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