Tribunal, by its order dated 17-1-2025, granted conditional stay of recovery of demand for assessment year 2020-21, noting refund due for assessment year 2005-06 and directing that only 20 per cent of outstanding demand be adjusted out of that refund. Despite this, on 17-2-2025 respondents adjusted the entire refund against assessment year 2020-21 demand. On 9-1-2026, the Tribunal extended stay on the same terms but did not direct refund of excess adjustment. Since action of respondents on 17-2-2025 was taken during operation of the order of the Tribunal dated 17-1-2025, and it was not the case of the revenue that the order of the Tribunal had been amended or vacated before 17-2-2025, action of respondents, being in violation of said order, was clearly illegal. On facts, the\u00a0 Tribunal clearly erred while passing the order dated 9-1-2026 in not directing respondents to refund the excess amount of Rs. 28.55 crores along with interest as per law. The order of the Tribunal was to be set aside to this limited extent, and respondents were directed to refund the excess amount along with interest as per law.\u00a0 (AY. 2005-06,\u00a0 2020-21)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 245: Refunds-Set off of refunds against tax remaining payable-Conditional stay-Tribunal granted conditional stay allowing adjustment of only 20 per cent of demand out of refund, but respondents adjusted entire refund in violation of operative stay order, such action was illegal, and failure of Tribunal to direct refund of excess amount with interest was erroneous, necessitating setting aside impugned order to this extent and directing refund of excess amount with interest as per law.[S. 254(1), Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64470","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gLQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64470"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64470\/revisions"}],"predecessor-version":[{"id":64471,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64470\/revisions\/64471"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}