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) directed the petitioner to discharge 20% of the demand raised vide order dated 26.03.2022, subject to which, the balance demand raised vide the said order dated 26.03.2022 and 23.09.2022 would be stayed. Since more than 20% of the demand came to be discharged by the petitioner by way of adjustment of refunds for A.Y.s 2021-22 to 2023-24, the petitioner sent a letter dated 14.03.2024, intimating the first respondent about the same and prayed for an order of stay till the disposal of the Appeals.
The petitioner alleges that the respondent is not empowered to adjust the entire amount of refund towards A.Y. 2024-25 in respect of the demand raised.
