NCLT says Tax Refund Cannot Be Adjusted Against Pre-CIRP Dues During Moratorium

The Income Tax Department adjusted ₹41.65 lakh from a ₹56.07 lakh refund determined after commencement of CIRP towards pre-CIRP tax dues. NCLT held that Section 245 of the Income-tax Act cannot be exercised inconsistently with the IBC moratorium and directed reversal of the adjustment.