2024 (7) TMI 1288 - HC - Income Tax

Seeking Refund remained unpaid - Adjustments made against alleged arrears from previous assessment years - petitioner submitted that the respondent has unlawfully made adjustments against alleged arrears from previous assessment years and the petitioner did not receive intimations or demand notices in respect of the adjustments made - All these adjustments were made after the writ petition was filed and it is unclear from paragraph 5 of the counter as to whether these adjustments were made after issuing demand notices in relation thereto. HELD THAT - WP disposed of by permitting the petitioner to submit a consolidated grievance petition before the jurisdictional assessing officer not only in respect of assessment year 2009-2010 but also in respect of other assessment years in relation to which adjustments were made. Such grievance petition shall be submitted within a period of 15 days from the date of receipt of a copy of this order. Upon receipt thereof, the assessing officer is directed to consider the grievance petition, including contentions regarding the unlawful adjustments without issuing demand notices, provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter dispose of such grievance petition by a speaking order. This exercise shall be completed within a period of two months from the date of receipt of the grievance petition.

Issues:
1. Petitioner seeking direction to consider grievances and refund for assessment year 2007-2008.
2. Unlawful adjustments made against alleged arrears from previous assessment years.
3. Allegations of adjustments without intimations or demand notices.
4. Respondent's submission regarding adjustments made by CPC and partial refund credited.
5. Petitioner's representation regarding TDS not considered for assessment year 2009-2010.
6. Disposal of W.P.No.15896 of 2022 and directions for submitting a consolidated grievance petition.

Analysis:

1. The petitioner, an individual assessee, filed a return of income for assessment year 2007-2008 on 31.07.2007. The matter was resolved under the Direct Tax Vivad Se Vishwas Act, 2020, resulting in a refund of Rs.8,64,604/- due to the petitioner. However, the refund remained unpaid despite multiple grievances raised, leading to the filing of the writ petition seeking direction for consideration of grievances and refund.

2. The petitioner alleged that the respondent made unlawful adjustments against alleged arrears from previous assessment years without providing intimations or demand notices. The petitioner contended that adjustments totaling Rs.8,64,604/- were illegal and should be paid. The respondent, through the junior standing counsel, defended the adjustments made by the CPC due to outstanding amounts from earlier assessment years. A partial refund of Rs.3,08,558/- was credited to the petitioner's bank account, with an assurance that grievances on adjustments would be addressed.

3. The petitioner's counsel highlighted that adjustments made without intimations or demand notices were unlawful and illegal. The respondent's submission acknowledged the adjustments made by CPC but emphasized that the petitioner could raise grievances for consideration. The petitioner also raised concerns about adjustments made after the writ petition was filed, questioning the legality of these adjustments without clarity on the issuance of demand notices.

4. Following the filing of the writ petition, the petitioner submitted a representation asserting that TDS for assessment year 2009-2010 was not considered while determining a demand of Rs.1,86,160/- and interest of Rs.2,54,957/- for that year. The petitioner claimed that no intimations or demand notices were issued for alleged arrears in other assessment years, making those adjustments unlawful. The court directed the petitioner to submit a consolidated grievance petition to the assessing officer within 15 days, addressing concerns for assessment years 2009-2010 and other years with adjustments. The assessing officer was instructed to provide a reasonable opportunity for the petitioner, including a personal hearing, and dispose of the grievance petition within two months.

5. In conclusion, the court disposed of W.P.No.15896 of 2022, allowing the petitioner to raise grievances through a consolidated petition. The assessing officer was directed to address the grievances, including contentions on unlawful adjustments, within a specified timeframe. No costs were awarded, and the connected miscellaneous petition was closed, providing a structured approach for resolving the issues raised by the petitioner.

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