Allowing the petition the court held that on the facts, the action of the Assessing Officer under section 245 making an adjustment of demand for the assessment year 2015-16 in excess of 20 per cent. against the refund relating to the assessment year 2008-09 without taking any decision and disposing of the objection of the assessee in its application under section 220(6) against the intimation was bad in law and therefore, unsustainable. The Assessing Officer was directed to refund the amount adjusted in excess of 20 per cent. of the demand for the assessment year 2015-16 from the amount refundable for the assessment year 2008-09. (AY.2015-16)
Graphite India Ltd. v. Dy. CIT (2022) 448 ITR 292 (Cal.)(HC)
S. 245 : Refunds-Set off of refunds against tax remaining payable-Appeal pending-Entitled to refund of amount adjusted in excess of 20 Per Cent-No order passed either accepting or rejecting–Entitled to refund of amount adjusted in excess of 20 Per Cent. [S. 156, 220(6), 227, Art. 226]