The Assessing Officer adjusted the refund without giving any prior intimation. On writ allowing the petition the Court held that where a party raises objection in response to the intimation, the Assessing Officer exercising powers under section 245 of the Act must record reasons why the objection was not sustainable and also communicate it to the assessee and this would ensure that the power of adjustment under section 245 of the Act is not exercised arbitrarily. On facts of the case the Court held that action of the Assessing Officer making the adjustment without prior intimation is bad in law and illegal hence quashed. (AY. 2008-09) (WP. No. 1476 of 2022 dt. 18-7-2022)