Court rules in favor of petitioner in incorrect tax deduction case for AY 2019-20. Relief granted, impugned orders set aside.

The court ruled in favor of the petitioner in a case involving incorrect tax deduction at source for Assessment Year 2019-20. The error in the TDS return was rectified, leading to relief for the petitioner as reflected in the revised Form 26AS. The court allowed the prayers in the writ petition, setting aside the impugned orders and notices. The Assessing Officer was directed to take further steps only if necessary, and the writ petition was disposed of in favor of the petitioner.

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Issues involved: Incorrect tax deduction at source leading to reassessment proceedings for Assessment Year 2019-20.

Details of the judgment:

Issue 1: Incorrect TDS return triggering reassessment
The petitioner's grievance stemmed from an initial error in the tax deducted at source return filed by Axiscades Engineering Technologies Limited (AETL), incorrectly showing that the petitioner received Rs. 1,09,94,821 from AETL. However, it was Siemens Industry Software (India) Pvt. Ltd. (SISPL) that actually received the amount. The rectification in the TDS return by AETL corrected this error.

Issue 2: Correction of error and relief for the petitioner
The revised Form 26AS downloaded by the petitioner revealed the correction of the error, with no withholding tax related to the transaction reflected in the revised form. Consequently, the court accepted that the prayers in the writ petition should be allowed, leading to the setting aside of the impugned orders and notices.

Issue 3: Disposal of the writ petition
The court disposed of the writ petition in favor of the petitioner, with the Assessing Officer directed to take further steps in law only if deemed necessary. The pending interlocutory application was closed, and parties were instructed to act based on the digitally signed copy of the order.

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