HINDUSTAN CONSTRUCTION CO. LTD. vs INCOME TAX OFFICER (COMPANIES CIRCLE) BOMBAY& ANR.

The Supreme Court interpreted Section 49E of the Indian Income-tax Act, 1922, clarifying that a prior adjudication is not necessary for a claim of set-off to be valid. The Court held that the term 'found to be due' does not imply a requirement for prior adjudication, allowing the Income-tax Officer to determine refund eligibility upon application. However, the Court concluded that since the appellant's previous claims had been rejected and were not challenged, there was no subsisting obligation for the Income-tax Officer to make a payment, leading to the dismissal of the appellant's claim.