Partnership Firm's Writ Application Granted, Relief from Recovery Notices for TDS Short Payment

The Court disposed of the writ application filed by a Partnership Firm seeking relief from recovery notices for TDS short payment. The Court directed the Commissioner of Income Tax to make necessary corrections or deletions of the outstanding demand within four weeks from the date of the order.

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Issues:
1. Writ application under Article 226 of the Constitution of India seeking relief from recovery notices for TDS short payment.
2. Discrepancy in TDS credit and recovery notices issued by the Assessing Officer.
3. Pending matter between Income Tax Officer and Commissioner of Income Tax for correction/deletion of outstanding demand.

Analysis:
1. The writ applicant, a Partnership Firm, sought relief from recovery notices dated 04.06.2018 and 24.12.2018 for the assessment year 2009-10, amounting to Rs. 2,34,020 due to short payment of TDS. The applicant had deducted TDS as per Income Tax Act, 1961, and filed the TDS return for the relevant year. Despite not receiving any order under Sections 201(1)/201(1A) of the Act, recovery notices were continually issued by the Assessing Officer.

2. Responding to the recovery notices, the applicant provided necessary information to the Assessing Officer requesting credit for the TDS deposited and cancellation of the demand raised. However, the respondent authority did not grant credit or provide reasons for not doing so, continuing to issue recovery notices. The matter was brought before the Court through the writ application due to these circumstances.

3. During the proceedings, the Revenue's Senior Counsel highlighted a letter from the Income Tax Officer to the Commissioner of Income Tax (CPC), Ghaziabad, requesting a reduction in demand on TRACES. The matter was pending with the Commissioner, as mentioned in the affidavit-in-reply. The affidavit stated that the outstanding demand was under verification and correction/deletion process at the CPC, Ghaziabad. The Court, noting the narrow compass of the controversy, disposed of the writ application, requesting the Commissioner to make the necessary corrections or deletions of the outstanding demand within four weeks from the date of the order. The Court directed the Registry to forward a copy of the order to the Commissioner for compliance.

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