Answer

1. F

   Facts

   Yes, if the demand itself was wrong. Once the demand is corrected through rectification or appeal, the adjusted amount becomes refundable.

2. P

   Provisions and law

   • Sec 154, Income-tax Act 1961 (now Sec 287, Income-tax Act 2025)A mistake apparent from the record can be rectified, on request or by the officer
   • Sec 245, Income-tax Act 1961 (now Sec 438, Income-tax Act 2025)Refund can be set off against an earlier demand only after a written intimation to the taxpayer
   • Sec 246A, Income-tax Act 1961 (now Sec 357, Income-tax Act 2025)Appeal to the Commissioner (Appeals) against an order or intimation, in Form 35 (now Form 99)
3. A

   Analysis

   Missing the 30 days only means the adjustment happened; it does not make a wrong demand correct. Example: ₹16,000 was adjusted for an AY 2018-19 demand that came from a TDS mismatch. File rectification with the officer showing the TDS credit; when the demand is reduced, the ₹16,000 is refunded. Where the demand came from an assessment order you disagree with, the appeal route and its time limit apply instead.

4. C

   Conclusion

   1. 1Find the order behind the adjusted demand
   2. 2Decide whether it is a rectifiable mistake or needs appeal
   3. 3File rectification with the officer, or appeal with a condonation request if late
   4. 4Raise a grievance if there is no movement
   5. 5Track the refund once the demand is reduced

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.