Wrong adjusted of income tax refund

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This query is : Resolved

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A taxpayer's refund was adjusted against a demand raised after an assessment, even though an appeal was filed. The adjustment is considered correct if no stay on the demand was obtained. The discussion also touches upon how to file a stay of demand online, particularly after the introduction of the faceless assessment system, suggesting sending the application via registered post to the AO.

Pawan Singhal

Pawan Singhal (Querist)

26 June 2021 assessment is done u/s 143 (3) and demand raised of rs. 1 lakh. we have filed appeal to CIT. but when i received my refund order of last assessment year they have adjusted demand in my refund.
is it wrong because we are in appeal and case is not final.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 June 2021 If you have not obtained any stay on demand in view of appeal, adjustment of demand in your refund is in order.

Pawan Singhal

Pawan Singhal (Querist)

10 July 2021 How to file stay of demand online after introduction of faceless assessment system

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 July 2021 Stay has to be filed with AO send stay application through registered post.
See the link for procedure.
https://www.google.com/amp/s/taxguru.in/income-tax/stay-applications-uner-the-income-tax-act-1961.html%3famp

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