Full Tax Demand Adjustment Against Income Tax Refund During Appeal Unjustified

Greaves Electric Mobility Limited Vs ACIT (Madras High Court) Madras High Court held that adjusting entire demand raised against refund due even during pendency of appeal is without jurisdiction. Accordingly, department directed to refund balance amount with interest. Facts- The petitioner is a Company, engaged in the business of manufacturing and selling of electric two wheelers. Revisionary proceedings were initiated by PCIT u/s. 263 of the Income Tax Act and order was passed raising a demand of Rs.1,34,57,582/- and ley of penaly u/s. 271 (1) (c) of the Act of Rs.1,77,41,968/-. CIT(A) direct...