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October 2015

Refund – Adjustment against demand u/s. 245 – A. Ys. 2004-05, 2007-08 and 2008-09 – Grant of stay of demand – Section 245 cannot be invoked

By K. B. Bhujle Advocate
Reading Time 1 mins
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Hindustan Unilever Ltd. vs. Dy. CIT; 279 CTR 71 (Bom):

By an intimation u/s. 245 dated 31/07/2013, the Assessing Officer sought to adjust the refund for the A. Y. 2006-07 against the demand for the A. Ys. 2004-05, 2007-08 and 2008-09. The assessee filed its objections pointing out that no demand is outstanding for A. Y. 2004-05 and stay of the demand has been granted u/s. 220(6) in appeal pending before he CIT(A) for the A. Ys. 2007-08 and 2008-09. Ignoring the objections, the Assessing Officer adjusted the refund against the demand.

The Bombay High Court allowed the writ petition filed by the assessee and held as under:

“Factually there was no due outstanding for the A. Y. 2004-05 and the demand for the A. Ys. 2007-08 and 2008-09 had been stayed pending disposal of the assessee’s appeal before the CIT(A). Section 245 cannot therefore be invoked.”

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