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VIBHU BAKHRU, AMIT MAHAJAN
Travelport International Operations Limited United Kingdom – Appellant
Versus
Commissioner of Income Tax International Taxation-3 N. Delhi – Respondent
JUDGMENT
Vibhu Bakhru, J.
1. The petitioner has filed the present petition, inter alia, impugning an order dated 17.11.2022, whereby a sum of Rs.6,27,20,736/- , which was payable to the petitioner, was adjusted by the respondents against the demand for a prior period (Assessment Year 2019-20). Intimation for proposing such adjustment under Section 245 of the Income Tax Act, 1961 (hereafter `the Act') was issued on 03.11.2022, affording the petitioner a period of thirty days to respond as to why such an adjustment not be made.
2. According to the petitioner, it was impermissible for the respondents to make any such adjustment for the dues pertaining to the Assessment Year 2019-20, as the demand in respect of the said assessment year was stayed in terms of an order dated 22.07.2022, passed by the Income Tax Appellate Tribunal. Further, the petitioner points out that the respondents' online portal on 15.11.2022 also reflected that the said demand was stayed.
3. Notwithstanding that the petitioner was afforded thirty days to respond to the notice why the adjustment of Rs.6,27,20,736/- not be made against the demand outstanding for the Assessment Year 2019-20; the respondents had proc
The court emphasized the importance of allowing the petitioner the full period to respond before making any adjustment under Section 245 of the Income Tax Act.
The main legal point established in the judgment is that the action of making adjustments of the refund without prior intimation, as required by section 245 of the Income Tax Act, is illegal and must....
Mandatory requirement of prior intimation under section 245 of the Income-tax Act and the continuation of stay till the disposal of the appeal.
The main legal point established in the judgment is that the adjustment made by the Assessing Officer must comply with the stipulated percentage of the disputed demand as per the relevant provisions ....
Natural justice requires prior intimation before adjusting tax refunds against outstanding dues under Section 245 of the Income Tax Act.
Adjustment of tax refunds against outstanding dues requires prior intimation and adherence to principles of natural justice as mandated by Section 245 of the Income Tax Act.
The main legal point established in the judgment is the mandatory requirement of prior intimation under Section 245 of the Income Tax Act, 1961 for the set off of refunds against tax remaining payabl....
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