INCOME TAX DEMAND WRONGLY ADJUSTED AGAINST REFUND

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

Replies (5)
Quick Summary
A user is questioning whether an income tax demand can be adjusted against their refund while an appeal is pending. While the initial assessment raised a demand, an appeal has been filed. The tax department has adjusted the refund against this demand. The discussion clarifies that this is standard procedure, but an opportunity to respond to the outstanding demand is usually provided via a Section 245 notice. If the demand is disputed, an application for stay of demand can be filed online.

No, I think it's not wrong
Its procedure. they adjust refund against demand.
Before adjusting refund against the outstanding demand an opportunity is hiven to assessee by way of issuing norice under section 245 in case of non response the same is adjusted by cpc

HOW TO FILE APPLICATION FOR STAY OF DEMAND ONLINE AFTER INTRODUCTION OF FACELESS ASSESSMENT SYSTEM.

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

Read more at: https://www.caclubindia.com/experts/wrong-adjusted-of-income-tax-refund-2845269.asp
U have to respond outstanding demand through e filing portal

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