https://www.taxtmi.com/caselaws?id=49344 Section 49E of the Indian Income-tax Act, 1922 permits set-off of a refund against tax payable only where the refund is legally due and there remains a subsisting obligation to pay it. The Income-tax Officer may consider whether a refund is due when the application is made, without a prior adjudication. However, the phrase "in lieu of payment" requires an enforceable refund liability to exist at that time. Where the competent revenue authorities have finally rejected the refund claim, the obligation to refund ceases and set-off is unavailable. The double taxation relief rules, though part of the Act under section 59(5), do not revive a claim that has been conclusively negatived. en-us Thu, 10 Dec 1964 00:00:00 +0530 Thu, 21 Aug 2014 08:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49344 Section 49E of the Indian Income-tax Act, 1922 permits set-off of a refund against tax payable only where the refund is legally due and there remains a subsisting obligation to pay it. The Income-tax Officer may consider whether a refund is due when the application is made, without a prior adjudication. However, the phrase "in lieu of payment" requires an enforceable refund liability to exist at that time. Where the competent revenue authorities have finally rejected the refund claim, the obligation to refund ceases and set-off is unavailable. The double taxation relief rules, though part of the Act under section 59(5), do not revive a claim that has been conclusively negatived. Case-Laws Income Tax Thu, 10 Dec 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49344