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IN THE HIGH COURT OF ORISSA AT CUTTACK
MURAHARI SRI RAMAN, HARISH TANDON, CJ
Reliable Security and Intelligence Services (Orissa) Private Limited – Appellant
Versus
National Faceless Appeal Centre (NFAC) – Respondent
| Table of Content |
|---|
| 1. petitioner challenges refund adjustments. (Para 1 , 2) |
| 2. court hears arguments consented by counsel. (Para 3) |
| 3. petitioner's compliance and procedural disputes. (Para 4 , 5) |
| 4. legal analysis of section 245 compliance. (Para 6 , 7) |
| 5. court evaluates evidence and prior legal precedents. (Para 8) |
| 6. court issues directions for compliance and intimation. (Para 9 , 10) |
JUDGMENT :
MURAHARI SRI RAMAN, J.
1. Aggrieved by adjustment of outstanding demand pertaining to Assessment Year 2018-19 (pertaining to Financial Year 2017-18), during pendency of statutory appeal, against the refund dues flown with respect to Assessment Years 2021-22, 2022-23, 2023-24 and 2024-25, notwithstanding deposits made as directed by the Income Tax Officer, Ward 1(1), Cuttack vide Orders under Section 220(6) of the INCOME TAX ACT , 1961, the writ petition is filed to invoke extraordinary jurisdiction under the provisions of Articles 226 and 227 of the Constitution of India, with the following prayer(s):
“Under the aforesaid circumstances it is prayed therefore that this Hon'ble Court may be graciously pleased to:
(A) Admit the Writ Application;
(B) Issue rule nisi calling upon the opposite party No. 2
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.
Natural justice requires prior intimation before adjusting tax refunds against outstanding dues under 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....
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 ....
Point of law: So far as Section 245 of the Act is concerned, there need not be any debate as regards the power of the Department to adjust the refund, however, such power should be exercised in a rea....
Point of Law : Taxation - Lieu of payment of refund tax - Government is bound to follow rules and standards they themselves had set on pain of their action being invalidated.
Tax authorities must adhere to established guidelines for refund adjustments, and deviations require explicit justification.
Mandatory requirement of prior intimation under section 245 of the Income-tax Act and the continuation of stay till the disposal of the appeal.
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