Court grants writ application, sets aside orders, directs revenue to issue refunds without adjustments. Unconditional stay of demand granted.

The court allowed the writ application, setting aside orders and conditions, directing the Revenue to issue refunds without adjustments. An unconditional stay of demand was granted until the appeal's final disposal by ITAT, urging expedited hearing within two months.

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Issues Involved:
1. Quashing of the order dated 12.07.2019 regarding refund adjustment.
2. Direction to issue refund for A.Y. 2014-15.
3. Quashing the condition of adjustment of future refunds.
4. Prohibition on recovery or adjustment of amounts for A.Y. 2012-13 and 2010-11.
5. Quashing and staying the operation of intimations dated 22.07.2019.
6. Granting unconditional stay of demand till the disposal of the appeal by ITAT.

Detailed Analysis:

1. Quashing of the Order Dated 12.07.2019 Regarding Refund Adjustment:
The writ applicants challenged the order dated 12.07.2019, which adjusted the refund against the demand for A.Y. 2012-13. The court noted that the respondent had previously granted stay orders with conditions to adjust future refunds. The court found that the Revenue's action to adjust refunds was not in accordance with the principle of reasonableness and fairness, especially when substantial tax payments had already been made by the writ applicants.

2. Direction to Issue Refund for A.Y. 2014-15:
The writ applicants sought a direction for the issuance of a refund arising from the appellate order for A.Y. 2014-15. The court observed that the Revenue had adjusted the refund of Rs. 224 Crore for A.Y. 2014-15 against the demand for A.Y. 2012-13. The court concluded that such adjustment should not have been made unconditionally and directed the Revenue to issue the refund without adjustment.

3. Quashing the Condition of Adjustment of Future Refunds:
The court examined the condition imposed by the respondent to adjust future refunds against the demand for A.Y. 2012-13. The court found that the condition was unreasonable, especially given the substantial tax payments already made by the writ applicants. The court set aside the condition, emphasizing that the power to adjust refunds should be exercised reasonably.

4. Prohibition on Recovery or Adjustment of Amounts for A.Y. 2012-13 and 2010-11:
The writ applicants sought prohibition on the recovery or adjustment of amounts for A.Y. 2012-13 and 2010-11. The court noted that the Revenue had issued intimations proposing to adjust refunds for these years. The court found that further recovery or adjustment would be unjust given the substantial payments already made and directed the Revenue to refrain from such actions until the disposal of the appeal by ITAT.

5. Quashing and Staying the Operation of Intimations Dated 22.07.2019:
The writ applicants challenged the intimations dated 22.07.2019, which proposed to adjust refunds for A.Y. 2012-13 and 2010-11. The court found these intimations to be unreasonable and quashed them. The court also stayed their operation, preventing the Revenue from recovering or adjusting any amounts based on these intimations.

6. Granting Unconditional Stay of Demand Till the Disposal of the Appeal by ITAT:
The court considered the substantial tax payments already made by the writ applicants and the financial hardships claimed. The court granted an unconditional stay of the demand against the application filed by the writ applicants dated 10.07.2019. The court emphasized that the stay would remain in effect until the final disposal of the appeal pending before ITAT.

Conclusion:
The court allowed the writ application, set aside the impugned orders and conditions, and directed the Revenue to issue refunds without adjustments. The court also granted an unconditional stay of the demand till the final disposal of the appeal by ITAT and requested ITAT to expedite the hearing and disposal of the appeal within two months.

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