Income Tax Refund Cannot be Adjusted When Recovery Is Stayed: Orissa HC

Saurav Chachra Vs Central Board of Direct Taxes (Orissa High Court) The writ petition before the Orissa High Court challenged the action of tax authorities in adjusting a refund of Rs. 14,80,270/- for Assessment Year (AY) 2025–26 against an outstanding disputed demand of Rs. 84,46,855/- for AY 2018–19, despite an existing stay on recovery under Section 220(6) of the Income Tax Act, 1961. The petitioner had been assessed under Section 147 for AY 2018–19, and subsequently filed an appeal before the National Faceless Appeal Centre. During the pendency of the appeal, the petitioner sought a ...