Income Tax Refund adjusted without Section 245 notice: HC directs issue of refund

Syed Habeebur Rehman Vs DCIT Circle 28(1) & Ors. (Delhi High Court) Background: Syed Habeebur Rehman filed a writ petition seeking a refund of approximately Rs. 46 lakhs for the assessment years 2010-11 and 2014-15. The petitioner claimed that the refund had been adjusted against the demand raised for the assessment year 2015-16 without issuing a notice under Section 245 of the Income Tax Act, 1961. Court Proceedings: The court, in an order dated 05.07.2023, directed the petitioner to file a formal application for stay before the Assessing Officer (AO) within one week. The AO was instruct...