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Issues:
- Compliance with section 245 of the Income-tax Act, 1961 before refund adjustment for assessment year 1996-97. - Nature of proceedings under section 245 and requirement of notice and hearing. - Interpretation of section 245 and necessity of intimation before adjustment. - Precedents cited regarding adjustment procedures under section 245. Detailed Analysis: The judgment concerns a complaint regarding the adjustment of a refund towards tax arrears without compliance with section 245 of the Income-tax Act, 1961. The petitioner received an intimation under section 143(1)(a) for the assessment year 1996-97, indicating the refund amount to be adjusted against tax due for the previous year. Despite receiving this intimation, the petitioner did not provide any reasons to the Department opposing the proposed adjustment. Only after being asked to pay a specific sum under the Samadhan Scheme, which considered the refund adjustment, did the petitioner contest the adjustment. The petitioner argued that section 245 mandates a notice and a hearing before making adjustments, contending that the proceedings are quasi-judicial. However, the court disagreed, stating that section 245 only requires an intimation in writing of the proposed action to the assessee, without necessitating a show-cause notice or a formal hearing. The court emphasized that authorities need to follow what the section explicitly outlines, without additional procedural requirements. Citing various precedents, the petitioner's counsel highlighted cases from different High Courts emphasizing the necessity of prior intimation before making adjustments under section 245. However, the court found that these decisions did not bolster the petitioner's case. The court dismissed the writ petition, stating that since the adjustment was made after due intimation to the petitioner, there was no error in calculating the amount payable under the Samadhan Scheme. Consequently, the petition was dismissed without costs.
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