The assessee’s refund for AY 2020-21 was adjusted by the Revenue against outstanding demands for AYs 2016-17, 2017-18 and 2018-19. The High Court noted that adjustment of refund against demand may, in certain cases, amount to a coercive measure, particularly where interim protection against recovery is operating. In respect of AYs 2017-18 and 2018-19, the issue was covered by the earlier decision in Huawei Telecommunications India Co. (P) Ltd v. ACIT  (WP No. 10835 of 2024 dt-4-12-2024 (Delhi)( HC)  wherein such adjustment was set aside. Further, even regarding AY 2016-17, the Revenue’s action was held unsustainable since no prior notice or intimation under S. 245 was issued, and the mandatory procedure for adjustment was not followed. Accordingly, the adjustment of refunds was quashed and the Revenue was directed to release the refund amount along with applicable interest expeditiously, preferably within eight weeks. (AY. 2020-21)