2000 (11) TMI 93

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....Act, 1961, was not complied with before the refund of a sum of Rs. 12 lakhs for the assessment year 1996-97 was adjusted towards the arrears of tax, in the calculation of the amount outstanding as on March 31, 1998, which is the material date for determining the extent of the relief to be granted to those availing of the Samadhan Scheme. The petitioner does not dispute the fact that he had in f....

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....arrears due, that the petitioner came forward to contend that the adjustment should not have been made. Learned counsel for the petitioner submits that section 245 of the Act is mandatory, that it contemplates a notice being given to the assessee before the adjustment is made, that it contemplates a hearing to be given to the assessee, and that the proceedings are quasi-judicial in nature. Coun....

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....y show-cause notice being given, calling upon the assessee to explain as to why the adjustment should not be made nor does it contemplate any hearing. All that section 245 of the Act requires the authorities to do is to make a readjustment "after giving an intimation in writing to such person of the action proposed to be taken under this section". The authorities are not required to go beyond what....

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.... before adjustment intimation has to be given in writing to the assessee of the action proposed to be taken. Reliance was also placed on the decision of the Bombay High Court in the case of Suresh B. Jain v. A. N. Shaikh, 16th ITO [1987] 165 ITR 151, herein again, it was held that the adjustment can only be after giving intimation in writing to the person of the proposed action. In that case, i....