Wp/860/2022 Of Gmr Airports Ltd v. Assistant Director Of Income-Tax

IN THE HIGH COURT OF KARNATAKA AT BENGALURUDATED THIS THE 9[TH|]DAY OF FEBRUARY, 2022BEFORE. THE HON BLE MR.JUSTICE S. SUNIL DUTT YADAV| $WRIT PETITION No.860/2022 (TIT) BETWEEN GMR AIRPORTS LID.,HAVING ITS OFFICE ATNO.25/1, SKIP HOUSE, ~MUSEUM ROADBENGALURU - 560 025REPRESENTED BY ITS DIRECTORSRI INDANA PRABHAKARA RAOAGED ABOUT 65 YEARS.PAN: AAACM/ /91L.. PETITIONER. (BY SRI SANDEEP HUILGOL, SENIOR ADVOCATE FOR|SRI BALRAM R. RAO, ADVOCATE) 1.ASSISTANT DIRECTOR OF INCOME-TAX CENTRALISED PROCESSING CENTER (CPC), INCOME TAK DEPARTMENT. POST BAG NO.1,.ELECTRONIC CITY POST OFFICEBANGALORE - 560 500.ELECTRONIC CITY POST OFFICEBANGALORE - 560 500. 2D.PRINCIPAL COMMISSIONER OF INCOME-TAX, CENTRAL,| CENTRAL REVENUE BUILDING, | 3RD FLOOR, QUEENS ROAD, BANGALORE - 560 OOL... RESPONDENTS (BY SRI K.V. ARAVIND, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND22/7 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THEIMPUGNED ORDER DATED 3RD DECEMBER 20271 UNDERSECTION 154 ISSUED BY THE CPC IN ANNEXURE-B ADJUSTING|THE ENTIRE REFUND FOR AY 2020-21 AGAINST THE DISPUTED|DEMAND FOR AY 201L/-18 AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY,THE COURT, MADE THE FOLLOWING: ORDER Petitioner has sought for setting aside the action of therespondent in adjusting the refund claimed by the petitioneras regards the alleged dues relating to the assessment year201/7-18. 2.It is stated that the petitioner nas filed nis return:of income for the year 2020-21 which was processed by theAutnorities. It is further submitted that the petitioner nadriled application under Section 154 of the Income Tax Act,1961 (for short ‘the Act’) seeking rectification of theintimation dated 06.08.2021 and an order came to pe.passed under Section 154 of tne Act, copy of which is)enclosed at Annexure-B. 3.Petitioner submits tnat tne refund entitied to thepetitioner has been adjusted to the demands for theassessment year 2017-18 even as regards to amount whichwas the subject matter of appeal and was stayed by virtueof the petitioner depositing 20% of the disputed amountwhile filing the appeal. Learned Senior counsel appearing forthe petitioner submits that the adjustment made in theorder under Section 154 of the Act without notice underSection 245 of the Act Is bad In law.| 4In light of the submission that there was nointimation under Section 245 of the Act as regards to theadjustment that has been effected while passing the orderunder Section 154 of the Act, the action of the respondent -—Authority is liable to be set aside as being in violation ofSection 245 of tne Act. 5 Accordingly, petition is disposed off and theorder under Section 154 of tne Act insofar as it relates to.adjustment of the petitioners refund towards the demandfor the assessment year 2017-18 is set aside. The respondents - Authority to reconsider the refund of tnepetitioner and if adjustment is sought to be made towardsdemand, notice under Section 245 ought to be issued andOpportunity to file objections must be granted and order tobe passed. The said process to be completed within eightweeks from the date of release of this order. | 6.In light of the above, the petition isdisposed off Sd/- JUDGE| VP