L G Chaudhary Vs ACIT (Gujarat High Court)
Gujarat High Court held that refund entitled to assessee on the basis of order passed by CIT(A) cannot be unjustifiably adjusted against subsequent year’s demand. Accordingly, AO directed to credit refund amount in bank account of the petitioner.
Facts- The petitioner filed return of income for A.Y. 2017-18 on 28.10.2017 declaring total income at Rs. 2,92,83,040/- and claimed refund of Rs. 1,00,01,050/-. The case of the petitioner was selected for scrutiny and assessment order u/s. 143(3) was passed on 30.12.2019 determining total income of 14,36,15,340/- raising a demand of Rs. 4,80,03,395/-.
Commissioner(Appeals) partly allowed the appeal reducing the taxable income to Rs. 3,52,31,671/- instead of Rs.14,36,15,340/-. During the pendency of the appeal proceeding, the respondent-department adjusted the refund for the subsequent years for A.Y. 2018-19 to 2023-24
Therefore, vide the present petition, the petitioner has contested for refund of Rs. 6.30 crore.
Conclusion- Held that though the CIT (Appeals) has held in favour of the petitioner, the refund due after order giving effect of the order passed by the CIT (Appeals) is not paid in spite of several reminders and the refund is being adjusted by the respondent without any basis for the subsequent year’s demand. Thus, we direct the respondent-Assessing Officer to credit the amount of Rs. 6.30 Crore in the bank account of the petitioner by coordinating the same with the respective departments including CPC or any other department responsible for such credit of the amount on or before the next date of hearing failing which, the responsible officer shall be held liable for breach of this order.
