ARCHANA SHUKLA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Prayer in the writ petition is for a direction to the respondents to grant refund ftowing from the order of assessment under Section 143(l)(a) of the Income-tax, 1961 (for short, the Act) dated 19.8.1999 for the Assessment Year 1998-99. It is her grievance that instead of granting refund, a subterfuge was adopted to make adjustment of the refund due to her against a demand purported to have been raised against M/S Techno Exports in respect of the assessment year 1994-95. Petitioner moved the Joint Commissioner of Income-tax (Respondent No.l) for grant of refund. It was communicated to her by said authority that a notice under Section 226(3) had been issued on 3.12.1999 and the refund has been adjusted against the demand raised in the case of M/S Techno Exports and the communication was indicated to be an intimation under Section 245 of the Act.

(2.) It is to be noted that by communication dated 3.12.1999, it was communicated to the petitioner that in her balance-sheet as on 31.12.1998, Rs.5.02 crores was shown as outstanding from her to U.K.Shukla, partner of the Firm Techno Exports. Said amount was indicated to have been attached in terms of Section 226(3) of the Act and Petitioner was directed to make payment by 10.12.1999.

(3.) According to learned counsel for Petitioner, the purported action under Section 245 is misconceived and the said provision has no application to the facts of the case. It is brought to our notice that the notice purported to have been issued under Section 226(3) has been subsequently withdrawn by orders dated 24.12.1999.