Refund adjustment without subsisting demand impermissible; petitioner entitled to refund and interest on determined tax amounts.

Refund amounts already determined in the petitioner's favour could not be adjusted against alleged demands for other assessment years when no subsisting demand existed for those years. The Court held that the respondents were not entitled to appropriate the refunds and that the petitioner was entitled to interest on the refundable amounts under Section 244A of the Income-tax Act. The respondents were directed to refund the amounts relating to assessment years 2010-11, 2011-12 and 2012-13 with applicable interest within the time fixed by the Court.

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Issues: Whether the petitioner was entitled to refund of the amounts determined for assessment years 2010-11, 2011-12 and 2012-13, and whether the respondents could adjust those refunds against alleged demands for other assessment years in the absence of any subsisting demand.

Analysis: The refund amounts had already been determined in the petitioner's favour in the orders giving effect to the appellate orders. The material on record showed no outstanding demand in relation to the assessment years sought to be used for adjustment, and the respondents were therefore not entitled to appropriate the refunds against those years. The petitioner was also entitled to interest on the refundable amounts under Section 244A of the Income-tax Act.

Conclusion: The petitioner succeeded. The respondents were required to refund the determined amounts for the three assessment years together with applicable interest under Section 244A within the time fixed by the Court.

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