2017 (8) TMI 43 - SCH - Income Tax

Adjustment of amount refundable for the Assessment Year 2012-13 against the tax demands - Held that - HC order confirmed 2017 (3) TMI 1336 - MADHYA PRADESH HIGH COURT wherein held Section 245 of the Act infact permits the Revenue to set off any demand from the amount to be refunded but the only condition is of intimation in writing to such person against whom action is proposed to be taken. We find that demand having been raised against the petitioner for the Assessment Years 2013-14 and 2014-15 and intimation having been sent to the petitioner on 05.01.2017, the mandate of Section 245 was satisfied by the Revenue before making adjustment from the refund due to the assessee from the tax due to the assessee for the subsequent years. In view thereof, we do not find any merit in the writ petition, the same is dismissed. In the facts of this case, we are not inclined to interfere with the order of the High Court. However, after the adjustment of the tax in the next year, the balance amount, if any, should be refunded to the petitioner by the Income Tax Department. The Special Leave Petition is dismissed.

Summary

The Supreme Court dismissed the Special Leave Petition and ordered the Income Tax Department to refund any balance amount to the petitioner after tax adjustment in the next year.