Income Tax Refund cannot be adjusted in excess of 20% of Disputed Demand: Delhi HC

Last updated: 14 August 2021
Quick Summary
The Delhi High Court has ruled that income tax authorities cannot adjust an available refund against a disputed demand by more than 20% of that demand. In this case, Eko India Financial Services (P) Limited had a refund for AY 2019-20 adjusted against a disputed demand for AY 2017-18. The court found this adjustment exceeded the 20% limit set by CBDT guidelines and ordered the excess amount to be refunded.

Court :
Delhi High Court

Brief :
In Eko India Financial Services (P) Limited vs Assistant Commissioner of Income Tax in W.P.(C) 5819/2021 dated August 03, 2021 the Hon'ble Delhi High Court directed the Revenue ('the Respondents') to refund the amount adjusted in excess of 20% of the disputed demand for the Assessment Year ('AY').

Citation :
W.P.(C) 5819/2021 dated August 03, 2021

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Bimal Jain
Published in Income Tax
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