For the assessment year 2012-13 the assessee’s employer withheld tax payable on salary but did not deposit it in the Central Government account. Hence, a demand was raised by the Department against the assessee and the refund payable to the assessee for the assessment year 2015-16 was set off against such demand. On a writ petition allowing the petition the Court held that neither could the demand in respect of the tax withheld by the deductor-employer be recovered from him nor could such amount be adjusted against the future refund, if any, payable to the assessee. The Department was not entitled in law to adjust the demand raised for the assessment year 2012-13 against any other assessment year. The assessee was entitled to a refund under section 237 in respect of the assessment year 2015-16. Referred instruction dated June 1, 2015 ([2015] 374 ITR (St.) 34). (AY.2012-13, 2015-16)