Court orders 20% tax refund adjustment, grants liberty for further remedy.

The court directed the adjustment of 20% of the demand raised for AY 2017-18 against the refund due for AY 2021-2022 & 2022-23, with the petitioner's consent. The concerned authority was ordered to pass the necessary order and dispose of the application for stay of demand within three weeks. The petitioner was granted liberty to seek further remedy if dissatisfied with the decision on the stay application. The writ petition was disposed of, pending applications were to be closed, and parties were instructed to comply with the digitally signed order.

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Issues involved:
The issues involved in the judgment are related to the adjustment of refund against a demand raised for a specific assessment year without following the prescribed regime under Section 245 of the Income Tax Act, 1961. Additionally, the delay in adjudicating an appeal against the assessment order and an application for staying the demand further complicate the matter.

Adjustment of Refund Against Demand:
The petitioner's principal grievance was that the respondents/revenue adjusted the refund of Rs. 1,72,02,960/- for Assessment Year 2021-22 & 2022-23 against a demand of Rs. 2,52,59,189/- raised for Assessment Year 2017-18 without adhering to the procedures outlined in Section 245 of the Income Tax Act, 1961. The petitioner highlighted that an appeal against the assessment order concerning the demand for AY 2017-18 was pending before the Commissioner of Income Tax (Appeals) and an application for staying the demand had also been submitted but remained unaddressed. The court, considering the circumstances, proposed an adjustment of 20% of the demand raised for AY 2017-18 against the refund due for AY 2021-2022 & 2022-23, to which the petitioner had no objection.

Court's Decision and Directions:
With the consent of both parties, the writ petition was taken up for hearing and final disposal. The court directed the concerned authority to make the adjustment of 20% of the demand raised for AY 2017-18 against the refund due for AY 2021-2022 & 2022-23. It was ordered that the concerned authority should pass an appropriate order in this regard. The petitioner was granted liberty to seek an appropriate remedy if aggrieved by the decision on the application for stay of demand. The concerned authority was instructed to dispose of the application for stay of demand within three weeks from the receipt of the judgment. The writ petition was disposed of accordingly, and pending applications were to be closed. Parties were directed to act based on the digitally signed copy of the order.

Separate Judgment by Judges:
No separate judgment was delivered by the judges in this case.

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