2024 (2) TMI 402 - HC - Income Tax

Court Orders Quick Resolution of Tax Rectification Applications and Timely Refunds to Ensure Compliance.

Afilias India Private Limited Versus Deputy Commissioner of Income Tax Circle 1 (1) And Ors.

The court directed the Revenue to expedite the processing of the rectification applications filed in June 2021 and January 2020. The court emphasized ... Early disposal of the rectification applications - Rectification application to issue refund against the Short-Grant of TDS credit as well as brought forward of loss and unabsorbed depreciation - early disposal of the rectification applications - HELD THAT:- As emphasized u/s 154(8) of IT Act the statutory period to dispose of a rectification application is “six months from the end of month in which the application was received”, which already stands expired in the present cases. Circular No.14/2001 dated 9th November, 2001 and Instruction No. 01/2016 dated 15th February, 2016 issued by the Central Board of Direct Taxes (CBDT) states that “time-limit of six months is to be strictly followed by Assessing Officer while disposing applications filed by the assessee/deductor/collector under section 154 of the Act”. Keeping in view the limited relief sought in the present matters, the writ petitions along with the applications are disposed of with a direction to the respondent no.1 to decide the petitioner’s rectification applications dated 30th June, 2021 and 29th January, 2020 by way of a speaking order in accordance with law within eight weeks and consequential refunds along with up-to-date interests, if any, be released to the petitioner in further eight weeks’ time. Issues involved: Seeking directions for disposal of rectification applications for assessment years 2017-18 and 2018-19, release of TDS credit, and refunds.Rectification Applications Disposal:The petitioner filed writ petitions to direct the Revenue to dispose of rectification applications from June 2021 and January 2020. The petitioner's counsel highlighted the delay in processing the applications despite statutory time limits under Section 154(8) of the Income Tax Act, 1961. Referring to Circular No.14/2001 and Instruction No. 01/2016 issued by the CBDT, it was emphasized that the time limit of six months for disposal of such applications must be strictly followed by the Assessing Officer. The court issued notice to the respondents and directed respondent no.1 to decide on the rectification applications within eight weeks, ensuring refunds and interests are released to the petitioner within a further eight weeks.Relief Sought:The petitioner sought early disposal of rectification applications and release of Short grant of TDS credit. Despite repeated requests and reminders, the authorities had not taken any action on the matter. The counsel stressed on the importance of timely processing as per the statutory provisions and guidelines provided by the CBDT. The court acknowledged the limited relief sought by the petitioner and directed the respondent to decide on the rectification applications promptly, ensuring refunds and interests are released within the specified timelines.Conclusion:In response to the writ petitions, the court directed the Revenue to expedite the processing of the rectification applications dated June 2021 and January 2020. The court emphasized the need for timely disposal as per the statutory provisions and issued specific timelines for the release of refunds and interests to the petitioner. By providing clear directions for the resolution of the issues raised, the court aimed to ensure compliance with the legal requirements and facilitate the petitioner's access to the entitled benefits in a timely manner.