2021 (10) TMI 1324 - HC - Income Tax

Delhi High Court Orders Timely Disposal of TDS Rectification Application

Cheil India Private Limited Versus Deputy Commissioner Of Income Tax & Anr.

The High Court of Delhi directed Respondent No. 1 to dispose of the rectification application seeking credit of TDS and consequential refund for ... Rectification application u/s 154 - seeking credit of taxes deducted at source and issue of the consequential refund (along with applicable interest u/s 244A) due to the Petitioner for assessment year 2016-17 - Petitioner is aggrieved by the inordinate delay on the part of the Respondent No. 1 in disposing of the rectification application dated 15th April, 2021 (which includes continuing grievances from earlier applications dated 10th April, 2018 and 29th January, 2020) filed under Section 154 - HELD THAT:- Mr. Sanjay Kumar, Advocate accepts notice on behalf of respondents. He states that the petitioner’s earlier rectification application dated 10th April, 2018 has already been disposed of vide order dated 23rd March, 2020. He also states that the order dated 23rd March, 2020 is an appealable order. A perusal of the order dated 23rd March, 2020 reveals that it neither gives any reason nor does it deals with the issue of TDS raised by the petitioner. Consequently, this Court directs the Respondent No. 1 to dispose of the petitioner’s rectification application dated 15th April, 2021 for the assessment year 2016-17 within six weeks in accordance with law. In the event the order is not complied with, the petitioner is given liberty to file an appropriate application before this Court. Issues Involved:Delay in disposing of rectification application seeking credit of TDS and consequential refund for assessment year 2016-17.Analysis:The petitioner filed a petition seeking directions for the Respondent No. 1 to dispose of the rectification application dated 15th April, 2021, related to assessment year 2016-17. The petitioner claimed credit of TDS amounting to INR 32,14,36,286/-, supported by Form 26AS, but the CPC granted credit of only INR 1,83,37,658/-. The petitioner's counsel highlighted the delay and the continuing grievances from earlier applications. The court noted the issue and directed the Respondent No. 1 to dispose of the rectification application within six weeks, failing which the petitioner could file an appropriate application before the Court.The Respondent's counsel accepted the notice and mentioned that the petitioner's earlier rectification application dated 10th April, 2018, had been disposed of, but the order did not address the TDS issue raised by the petitioner. The court observed the lack of reasoning in the previous order and emphasized the need for the current rectification application to be addressed promptly. The court directed the Respondent No. 1 to take action in accordance with the law and specified a timeline for the disposal of the petitioner's application.In conclusion, the High Court of Delhi addressed the delay in disposing of the rectification application related to TDS credit and consequential refund for the assessment year 2016-17. The court's directive to the Respondent No. 1 to process the application within six weeks signifies the importance of timely resolution of tax-related matters. The judgment ensures that the petitioner's grievances are appropriately addressed and highlights the significance of adhering to legal procedures in matters concerning tax credits and refunds.