Jet Privilege (P.) Ltd. v. Dy. CIT (2021) 205 DTR 145 / 322 CTR 684 / 131 119 (Bom.)(HC)

S. 245 : Refund-Set off of refunds against tax remaining payable-Stay of demand-Adjustment of refund without giving an intimation in writing is held to be bad in law. [Art. 226]

Allowing the petition the Court held that  adjustment of  refund against demands for assessment years 2015-16 and 2016-17 without following the  mandatory prior requirement of intimation under section 245 before making adjustment and fact that there was stay for recovery of outstanding demand for said assessment years 2015-16 and 2016-17, impugned adjustment of refund was unjustified. Followed Suresh B. Jain v. A.N. Shaikh, ITO (1987) 165 ITR 151 (Bom.)(HC). (AY. 2019-10)