Anshu Hospitals Limited Vs Chairman (Punjab and Haryana High Court)
The Punjab and Haryana High Court considered a petition challenging the adjustment of a ₹19.10 crore income tax refund determined for assessment year 2024-25 against an earlier tax demand of ₹20.39 crore for assessment year 2022-23.
For AY 2022-23, an assessment order dated 30.03.2024 raised an additional income tax demand of ₹20.39 crore against the petitioner. The petitioner filed a statutory appeal against the assessment order on 29.04.2024 and voluntarily deposited ₹1 crore on 22.05.2024. On 30.09.2024, the petitioner sought a stay of recovery of the demand beyond the ₹1 crore already deposited.
Meanwhile, an assessment order dated 08.10.2024 under Section 143(1) of the Income Tax Act, 1961, for AY 2024-25 determined a refund of ₹19.10 crore in favour of the petitioner. On 14.10.2024, the petitioner received a notice under Section 245 of the Act proposing adjustment of this refund against the earlier ₹20.39 crore demand for AY 2022-23.
On 24.10.2024, the petitioner’s stay application concerning the AY 2022-23 demand was allowed, subject to a further deposit of ₹2.05 crore in five instalments of ₹41 lakh each. The entire demand was thereby stayed subject to the specified deposits. The stay order was not challenged by the respondents and attained finality. On 25.10.2024, the petitioner’s Jurisdictional Assessing Officer uploaded the stay order on the Income Tax Business Application Portal (ITBA Portal).
