The Assessee is a salaried individual. He worked in UK from Jan 2009 to June 2009. He was paid salary in UK on which tax was deducted. He returned to India thereafter and was paid salary in India, on which tax was deducted. Indian employer issued Form 16 including UK salary and including UK tax credit in the TDS details therein. Assessee filed tax return reporting these incomes and TDS and credit.

The Assessee did not receive any intimation under S. 143(1) for the said return of income. However, directly on 07.11.2017, he received an intimation under S. 245 of the Act, proposing to adjust a refund for AY 2017-18 against an alleged demand for AY 2010-11. In the said intimation it was mentioned that there was an outstanding demand of `1,86,370/-raised on 20.06.2011 for the AY 2010-11-this amount substantially corresponded to the UK tax deduction on which assessee claimed FTC.

The Assessee filed a rectification petition against the S. 245 intimation, mentioning that he was not aware of any demand and that the same be deleted. However, there was no outcome on this. Hence, an appeal was filed against the intimation under S. 245 before the CIT(A), who dismissed the appeal, stating that the said intimation is not an appealable order. For similar reasons, the ITAT dismissed the appeal that followed.

On writ to the High Court against the intimation, the following directions were given: (a) The Assessee shall be provided the benefit of the tax paid in the foreign jurisdiction as mentioned in the Form-16 issued by his employer, and the demand for AY 2010-11 shall be deleted. Refund (if any) of any other AY, if already adjusted against the outstanding demand for AY 2010-11, shall be refunded to the Assessee. The exercise of giving credit of tax paid/deducted/held abroad and refund, if any, shall be completed by the AO within 12 weeks. The High Court  held  that the Income Tax Department did not bring on record any intimation claimed to have been issued under S. 143(1) or the notice of demand claimed to have been served upon the Assessee.(AY. 2010-11)