Nokia Solutions And Networks India Pvt Ltd Vs JCIT (Delhi High Court)
Delhi High Court held that revenue/ department is not entitled to adjust the refunds granted to the petitioner against demand of tax that is stayed. Accordingly, department is directed to refund the amount due to the petitioner.
Facts- The petitioner has filed the present petition, impugning an order dated 07.08.2019, whereby the outstanding demand in respect of the assessment year (AY) 2015-16, had been recovered by adjusting the refund payable to the petitioner for the AY 2008-09. Notably, the question that falls for consideration, herein, is whether the Revenue is entitled to adjust the refunds granted to the petitioner against the demand of tax that was stayed, pursuant to the order dated 21.02.2019.
Conclusion- Held the effect of the Revenue adjusting refunds against the stayed demand would essentially place the Assessee that is entitled to a refund in a disadvantageous position vis-a-vis those assesses to whom no refund is due. It is also material to note that there is no allegation that the petitioner is alienating its assets so as to frustrate the recovery of any demand or that it would be unable to pay the disputed demand in the event the same was confirmed in the appellate proceedings.
