Refund Cannot Be Withheld under Section 245 of the Income Tax Act Unless Department Establishes Tax Liability: Calcutta High Court

A significant order has been delivered by the Calcutta High Court on 3rd November 2025 in the matter of Rajneesh Agarwal versus Income Tax Officer, Ward 22(2). The case concerns the long-pending income tax refund due to the petitioner, a practising Chartered Accountant, who claimed that the Income Tax Department had unlawfully withheld his refund despite multiple rectifications and representations. The core issue revolves around the Department’s use of Section…