Bombay HC clarifies that IT officers cannot adjust the refunds due to taxpayers against outstanding demands in excess of the prescribed limit

The Bombay HC Judgement on the writ petition filed by Vrinda Sharad Bal has clarified that Income tax (I-T) officers cannot adjust the refunds due to taxpayers against outstanding demands in excess of the limit prescribed by CBDT in Office Memorandum issued on 29.02.2016. The petition was regarding the I-T returns for the financial year 2012-13 filed by the petitioner. The refunds adjusted were more than 20% of the tax demand which is the limit prescribed by the memorandum. The petition was allowed also taking into consideration the hardships faced by taxpayers due to lockdown.