2012 (4) TMI 807 - HC - Income Tax

Petition challenging tax order disposed with directions for certificate issuance & refund application

The High Court of Madhya Pradesh disposed of a petition challenging an order for tax payment and certificate issuance by respondent No. 2. The court ... Certificate of deduction - Application for refund of tax withheld - Coercive recovery measures - Issuance of certificate to enable further proceedings before assessing officerCertificate of deduction - Issuance of certificate to enable further proceedings before assessing officer - Application for refund of tax withheld - Direction to respondent No. 2 to issue a certificate evidencing deduction of the sum withheld and paid, to enable the petitioner to pursue refund or other proceedings before the assessing officer. - HELD THAT: - The petitioner challenged the order impugned but, in view of the respondent's admission in paragraphs 16 and 17 of the additional parawise reply that tax had been paid by the respondent on account of amounts withheld (out of payments relating to Financial year 2009-10) and the respondent's undertaking that a certificate would be issued, the Court disposed of the petition by directing respondent No. 2 to issue the certificate within one week. The Court recorded that the certificate will permit the petitioner to file it before the assessing officer and, if entitled (for example, where income is below taxable limit or a loss is established), to claim refund of the excess amount withheld. The direction follows the respondent's statement about coercive recovery measures, payment to the Income Tax department, and the respondent's willingness to furnish the necessary certificate to facilitate statutory remedies before the assessing officer.Respondent No. 2 directed to issue the certificate of deduction in respect of the withheld sum within one week, and the petitioner granted liberty to pursue further proceedings including refund applications before the assessing officer.Final Conclusion: Petition disposed of by directing respondent No. 2 to issue the certificate of deduction within one week, thereby enabling the petitioner to pursue further proceedings, including an application for refund, before the assessing officer in accordance with law. Issues involved: Petition challenging order passed by respondent No. 2 u/s 16 and 17 for tax payment and certificate issuance.Summary:The High Court of Madhya Pradesh heard a petition filed by a petitioner aggrieved by an order from respondent No. 2 dated 30-8-2011. The petitioner's counsel submitted that based on the respondent's statements in paragraphs 16 and 17 of the additional reply, the petition should be disposed of, allowing the petitioner to obtain a certificate from respondent No. 2 and proceed with further actions before the Income Tax Authority as per the law. Respondent No. 2 had no objection to this request. The respondent mentioned in paragraphs 16 and 17 that they paid a sum of Rs. 4,42,99,095 to the Income Tax department out of Rs. 5,73,92,946 withheld from the financial year 2009-10. The respondent undertook to issue the certificate of deduction within a week. The court directed the respondent to issue the certificate to the petitioner, who could then proceed with further actions, including applying for a refund of the excess amount withheld by respondent No. 2. The petition was disposed of with these directions and liberty granted to the petitioner for further proceedings in accordance with the law.