Case Law Details
Infres Methodex Private Limited Vs ACIT (Delhi High Court)
In a precedent-setting verdict, the Delhi High Court permitted a 20% adjustment of refund against Income Tax demand in the case of Infres Methodex Private Limited Vs ACIT. The court upheld that the respondents/revenue could adjust the refund due to the petitioner against a demand raised for the Assessment Year (AY) 2017-18, albeit with limitations.
The judgement is crucial as it explores the nuanced interpretation of Section 245 of the Income Tax Act, 1961. The petitioner contended that the respondents/revenue adjusted the refund due to it against the demand for AY 2017-18 without adhering to the stipulations of Section 245. While the petitioner filed an appeal against the assessment order and an application to stay the demand, both remained unadjudicated. In light of these circumstances, the court queried whether the petitioner would consent to a 20% adjustment of the refund due against the demand raised for AY 2017-18. The petitioner agreed, and the court accordingly issued the directive.
This verdict signifies a vital advancement in the legal discourse surrounding tax refunds and adjustments. The court’s ruling offers an equitable resolution, maintaining a balance between the statutory obligations of taxpayers and the interests of the revenue. The judgement also emphasises the need for authorities to expedite their responses to appeals and stay applications, thereby ensuring timely and efficient resolution of disputes.
FULL TEXT OF THE ORDER OF ITAT DELHI
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