Calcutta HC Quashes Refund Adjustment as Recovery Exceeded 20% of Disputed Demand

Danieli India Limited Vs ACIT (Calcutta High Court) The Calcutta High Court considered a writ petition challenging the Income Tax Department’s adjustment of admitted refunds under Section 245 of the Income Tax Act, 1961. The petitioner contended that the Income Tax Authority adjusted refunds due for Assessment Years (AYs) 2010-11 and 2017-18 against tax demands relating to AYs 2011-12, 2012-13 and 2013-14 without complying with the mandatory requirement of prior intimation under Section 245. The petitioner also argued that, since appeals against the assessment orders for AYs 2011-12, 201...