Indian Kanoon - Search engine for Indian Law

4. It was contended by the Ld.Counsel for the assessee, Shri S.S. Deshpande, that as per the return for the assessment year 2010-11 filed by the assessee on 15.10.2010, there is a refund due of Rs. 8,64,26,312/- which should have been adjusted against the tax due for the assessment years 2007-08, 2009-10 and 2008-09. He further submitted that as all the bank accounts of the assessee have been freezed by the department and all the properties of the assessee were seized and the debtors have also been issued letters by the department u/s 266(3) for payment of their dues directly to the department, the assessee is not in a position to pay the taxes. Our attention was drawn to the letter dated 9.9.2011 issued by the ACIT u/s 226(3) to the debtor of the assessee Chief Engineer (Roads), Public Works Department, Chandigarh, for payment of Rs. 48.87 crores due from the assessee. Our attention was also invited to letter dated 2.11.2011 issued by the ACIT u/s 226(3) to the Executive Engineer, PWD, Kethal, for payment of Rs. 48.87 crores due from M/s Zoom Developers Private Limited. In these circumstances, he requested that the Commissioner of Income Tax (Appeals) be directed to accept the appeals for adjudication on merits by adjusting the tax refund due to the assessee for the assessment year 2010-11, the balances available in the bank accounts so freezed by the department and proceeds, if any, recovered directly from the debtors.