Section 245 adjustments must adhere to principles of natural justice: Bombay hC

Sulzer Pumps India Private Limited Vs ACIT (Bombay High Court) Bombay High Court ruled in favor of Sulzer Pumps India Pvt. Ltd., setting aside income tax refund adjustments made under Section 245 of the Income Tax Act for assessment years 2012-13, 2013-14, and 2014-15. The court found that the Income Tax Department had failed to provide proper notice before making the adjustments, violating due process. In Writ Petition No. 4892 of 2024, the respondents admitted that while a notice had been prepared, it was never issued to the petitioner. The court, referencing past judgments in Hindustan Unil...