9911796707
TMI Blog2023 (7) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the time to make the payment stands extended till the disposal of the appeal by CIT (Appeals). Non-giving of intimation in writing prior to setting off the amount payable against the amount to be refunded is fatal. This Court in Jet Privilege (P) Ltd. [ 2021 (8) TMI 593 - BOMBAY HIGH COURT] and BPCL [ 2021 (11) TMI 1158 - BOMBAY HIGH COURT] held that the requirement of prior intimation u/s 245 of the ITA was a mandatory requirement and failure to comply with this mandatory requirement of prior intimation would make the entire adjustment wholly illegal. Order: - The adjustment for AY 2021-22 against the demand for AY 2015-16 2016-17 and adjustment for AY 2017-18 against the demand for AY 2016-17 are quashed and set aside and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, the Tribunal by orders dated 23rd March 2022 for AY 2015-16 and 5th September 2022 for AY 2016-17 decided in favour of the Petitioner in an appeal against the order u/s 263 of ITA passed by Respondent No. 4. It is submitted that the CBDT Circulars also mandate stay in such cases till the disposal of the first Appeal. 3. Learned Sr. Counsel submits that by an order dated 27th January 2023 u/s 254 of the ITAT a refund of ₹ 44,58,24,745/- was determined. The same was adjusted against the demand for AY 2016-17 without prior intimation u/s 245. It is submitted that the law mandates an intimation and a speaking order after considering the Petitioner s objections to such adjustment which was not followed. 4. In defence Mr. Mohanty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disposal of the appeal by CIT (Appeals). With regard to the second contention, non-giving of intimation in writing prior to setting off the amount payable against the amount to be refunded is fatal. This Court in Jet Privilege (P) Ltd. v Dy CIT [2021] 131 taxmann.com 119 and BPCL v ADIT [2021] 133 taxmann.com 320 held that the requirement of prior intimation u/s 245 of the ITA was a mandatory requirement and failure to comply with this mandatory requirement of prior intimation would make the entire adjustment wholly illegal. 6. In view thereof, we pass the following order i. The adjustment of ₹ 166,84,74,041 for AY 2021-22 against the demand for AY 2015-16 2016-17 and adjustment of ₹ 44,58,24,745/- for AY 2017-18 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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