TaxTMI 
TaxTMI 
The assessee claimed a refund in his return. The amount was refunded, even though scrutiny proceedings were intiated. The AO passed an order, 2 points contested with CIT(A), 2 points not contested. With the effect, the refund creditted has to be paid back alongwith 234D Interest.
My Q: Can the assessee go on appeal with CIT(A), before paying the refunded amount with interest as applicale, as he's not contesting that addition.
Section 246A
20 Jan 2012 
1 Reply 
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Refund recovery obligation: can a taxpayer appeal without repaying credited refund with statutory interest while contesting other issues?
A taxpayer obtained a refund claimed in his return despite pending scrutiny; the AO later ordered that the refunded amount be repaid with statutory interest due to assessment adjustments. Two points were appealed to the first appellate authority while two additions were not contested. The taxpayer asks whether he can proceed with appeal on the contested points before repaying the refunded amount and interest. The forum respondent sought complete facts and the assessment order to advise further, implying the answer depends on specific case details and procedural interplay between repayment obligations and appeal filing. (AI Summary)
A taxpayer obtained a refund claimed in his return despite pending scrutiny; the AO later ordered that the refunded amount be repaid with statutory interest due to assessment adjustments. Two points were appealed to the first appellate authority while two additions were not contested. The taxpayer asks whether he can proceed with appeal on the contested points before repaying the refunded amount and interest. The forum respondent sought complete facts and the assessment order to advise further, implying the answer depends on specific case details and procedural interplay between repayment obligations and appeal filing. (AI Summary)
