Income Tax Refund Set-Off without prior intimation to Assessee is invalid

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We are reproducing herewith a case study on the above subject, which is as follows-
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In the present case there was no prior intimation of the proposed action of adjusting the amount of refund due to the assessee towards any other amount due from the assessee. It was an intimation informing the appellant that the amount of refund due for the assessment year 1997-98 stood adjusted against the outstanding demand for the assessment year 1995-96. It would not be same thing as a prior intimation of the proposed action. As the adjustment of the refund amount was made without following the provisions of section 245 and without giving a proper intimation the same was bad in law. The provisions of section 245 being mandatory in nature, any action taken contrary to such provision would be bad in law.
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HIGH COURT OF KARNATAKA
Jeans Knit (P.) Ltd.
v.
Deputy Commissioner of Income-tax
Writ Petition Nos. 2508-2509 of 2013 (T-IT)
FEBRUARY 13, 2013
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Curtesy : TaxGuru