Pending objection proceedings bar adjustment of refund against later tax demands until the objections are decided on merits.

Authorities could not adjust or withhold a taxpayer's refund against later-period demands while an objection petition remained pending before the Objection Hearing Authority. The pending objection proceedings operated to suspend the adjustment order, so the refund could not be set off until the objections were decided independently on merits. The refund adjustment was therefore impermissible, and the taxpayer was entitled to release of the refund together with up-to-date interest.

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Issues: Whether the authorities could adjust and withhold the petitioner's refund against later-period liabilities when an objection petition was pending before the Objection Hearing Authority.

Analysis: The refund was initially payable to the petitioner, but the authorities sought to withhold and adjust it against later-period demands. The pendency of the objection petition triggered the statutory suspension of the adjustment order, and the refund could not be set off against the later demands until the objection proceedings were independently decided on merits.

Conclusion: The adjustment and withholding of the refund was impermissible, and the petitioner was entitled to release of the refund with up-to-date interest.

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