“P.S. Srijan Height Developers” Refund Adjustment Breach

The Calcutta High Court delivers a nuanced ruling balancing procedural illegality with equitable restraint. 

While it unequivocally holds that adjustment of refunds without adhering to statutory safeguards under Section 245 and CBDT guidelines is invalid, it denies relief for older adjustments due to delay. 

For recent adjustments, the Court orders refund of amounts exceeding 20% of disputed demand, reinforcing that tax recovery powers must operate within the bounds of natural justice and administrative discipline.