Income tax refund adjustments across multiple years during pending s.143(1) appeal: refund order denied without stay request

The dominant issue was whether the HC should direct the revenue authority to refund amounts adjusted against refunds for multiple assessment years while an appeal against an intimation under s.143(1) was pending. The HC held that, in the absence of any request for stay of demand by the taxpayer, no mandatory writ could be issued compelling refund, as the adjustment could not be interdicted without invoking the statutory mechanism for stay. Consequently, the HC declined to order refund, but permitted the taxpayer to file an appropriate representation before the appellate authority, directing that authority to consider and dispose of it in accordance with law.

---

---

The writ petition sought expeditious disposal of an appeal pending before the appellate authority against an intimation dated December 18, 2021 issued under Section 143(1) of the Income Tax Act, 1961. The appeal was filed on January 2, 2023 and remained undecided for over two years. Given this delay, the Court requested the appellate authority to dispose of the appeal "as expeditiously as possible, preferably within a period of eight (8) weeks from the date of communication of this order, strictly in accordance with law." The petitioners also sought directions for refund of sums adjusted by the Revenue against amounts refundable for several assessment years, contending the adjustments "far exceed the outstanding demand" for the years 2021 to 2025. The Court declined to grant a mandatory refund order, reasoning that "there appears to be no request for stay of demand having been made," and therefore "no mandatory order for refund as prayed for can be passed." The petitioners were permitted to make an appropriate representation before the appellate authority, which must be considered and disposed of in accordance with law.

---