1999 (7) TMI 13

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....was reduced to Rs. 14,75,003 and the matter is stated to be pending before the Income-tax Appellate Tribunal. For the assessment year 1996-97, by virtue of a rectification order passed under section 154 on August 31, 1998, a sum of Rs. 22,87,134 was re fundable. For the assessment year 1997-98 a refund of Rs. 10,78,700 was found payable in accordance with the intimation under section 143(1)(a) of the Act. According to learned counsel for the petitioner, adjustment of refund for the year 1997-98 and part of the amount refundable of 1996-97 have wrongly been adjusted in the demand outstanding for 1995-96. In the intimation for the assessment year 1997-98 dated March 31, 1998, adjustment of refund of Rs. 10,78,700 for the demand of 1995-....

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....R 110, the Delhi High Court also observed that if any refund is due to the assessee, intimation in writing is to be given for an action proposed to be taken under section 245. Any order of set off purporting to be made without any such intimation is neither fair not just nor reasonable and has to be ignored. The matter if examined in the light of the above decisions and the provisions of section 245 of the Act, it is clear that the adjustment/set off could be made after giving the intimation to such person of whom the action is proposed to be taken. The word "after" in the section refers that first intimation has to be given and then adjustment/set off may be made. In spite of opportunity being given, it has not been proved that any inti....