Yogesh Choudhary Vs ITO (Rajasthan High Court)
Summary: The Rajasthan High Court directed the Income Tax Department to refund, with applicable interest, any amount recovered or adjusted from Yogesh Choudhary in excess of 20% of the disputed demand for Assessment Year 2018-19. The petitioner had filed its return on 30.10.2018. An assessment under Section 143(3) of the Income-tax Act, 1961 was completed on 12.03.2021 determining total income at Rs. 5,39,58,417/- and raising demand of Rs. 2,78,32,572/-. The petitioner filed an appeal before the CIT(A) on 10.04.2021, which remained pending. Subsequently, a rectification order dated 17.08.2023 under Section 154 granted TDS credit of Rs. 80,77,683/- and credit of Rs. 64,05,820/- towards an earlier refund adjustment, revising the outstanding demand to Rs. 1,35,94,685/-. According to the petitioner, the disputed demand was Rs. 2,00,00,505/- and a cumulative Rs. 73,96,840/-, approximately 37%, had been recovered through payments and adjustment of subsequent refunds.
The petitioner sought stay of the balance demand and refund of the amount recovered beyond 20%. By order dated 24.07.2025, the Department stayed recovery of the remaining demand until disposal of the first appeal or twelve months, whichever was earlier, expressly recording that more than 20% had already been deposited. It nevertheless declined to refund the excess and permitted adjustment of future refunds. The petitioner contended that this was contrary to the CBDT Office Memoranda dated 29.02.2016 and 31.07.2017.
