https://www.taxtmi.com/caselaws?id=791128 A rectification that withdraws an exemption and reduces a refund under the Income-tax Act, 1961 is not sustainable without prior notice and an opportunity of hearing, because section 154(3) mandates compliance with natural justice where assessment is enhanced or refund is reduced. The Court also treated the matter as a high-pitched tax dispute and held that coercive recovery should remain in abeyance while a bona fide appeal against the rectification is pending. It therefore directed expeditious disposal of the appeal and protected the assessee from recovery action until the appellate process concludes, without deciding the merits of the exemption claim. en-us Thu, 30 Apr 2026 00:00:00 +0530 Wed, 06 May 2026 08:32:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791128 A rectification that withdraws an exemption and reduces a refund under the Income-tax Act, 1961 is not sustainable without prior notice and an opportunity of hearing, because section 154(3) mandates compliance with natural justice where assessment is enhanced or refund is reduced. The Court also treated the matter as a high-pitched tax dispute and held that coercive recovery should remain in abeyance while a bona fide appeal against the rectification is pending. It therefore directed expeditious disposal of the appeal and protected the assessee from recovery action until the appellate process concludes, without deciding the merits of the exemption claim. Case-Laws Income Tax Thu, 30 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791128