x is spouse of y. An income tax demand was raised against x in previous assessment year. In current year Y has a refund . Can Income tax Department set off the refund of Y against demand pending in case of x. If yes under which circumstances and If y has not given his concent for set off of refund , Can IT department set off his refund.
10 October 2009
there is no such provision for set off of demand of one assessee from refund of another assessee in any curcumtances irresseptive of fact what relation exists between both assessee.
10 October 2009
Generally the A.O. make such adjustments where the assessees are close relatives. If the assessee requests and consented for such adjustment then it can be done by the A.O. But without his consent no such adjustment can be carried out.