Refund Cannot Be Adjusted Against Disputed Demand Pending Appeal & Stay Application: Calcutta HC

Bothra Shipping Services Pvt. Ltd. Vs Union of India (Calcutta High Court) The petitioner challenged the adjustment of its income tax refund for Assessment Year (AY) 2021-22 against an outstanding demand relating to AY 2023-24. The principal grievance was that the adjustment had been made even though a Stay Application under Section 220(6) before the Assessing Officer and an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] for AY 2023-24 were still pending. The petitioner contended that the refund due for AY 2021-22 had already been determined and had become payable. However, th...