2024 (3) TMI 317 - HC - Income Tax

Court Orders Rs. 7,65,000 Refund for TDS Credit Error in 2020-2021 Assessment; Respondents Have Two Months to Comply.

Vajra Global Consulting Services LLP, Represented by its Partner Shri. G. SankaraBaaham Versus Assistant Director of Income Tax, Income Tax Officer, Non-Corporate Ward 1 (6), Chennai

The HC quashed the impugned orders dated 27.03.2021 and 10.07.2023, directing the respondents to refund Rs. 7,65,000/- to the petitioner due to a TDS ... Credit of TDS denied - HELD THAT:- The documents on record indicate that the total amount deducted as TDS was Rs. 18,53,863/-. Since credit was provided only in respect of Rs. 10,88,863/- and not in respect of the differential amount of Rs. 7,65,000/-, the petitioner is entitled to refund in respect thereof. Hence, the impugned orders are quashed and the respondents are directed to take all necessary steps to refund the sum to the petitioner. This exercise shall be completed within a maximum period of two months from the date of receipt of a copy of this order. Issues involved: Challenge to orders dated 27.03.2021 and 10.07.2023, refund of differential amount u/s TDS credit.Summary:Issue 1: Challenge to orders dated 27.03.2021 and 10.07.2023The petitioner challenged an order dated 27.03.2021 and a consequential order dated 10.07.2023. The petitioner sought a refund of the differential amount between Rs. 18,53,863/- and Rs. 10,88,863/-.Issue 2: TDS credit discrepancyThe petitioner filed a return of income for assessment year 2020-2021 claiming TDS credit of Rs. 10,88,863/-. However, TDS of Rs. 7,65,000/- deducted by M/s. Richfeel Health and Beauty Private Limited was not initially reflected in Form 26AS. After the entity filed its return, the credit of Rs. 7,65,000/- was reflected in Form 26AS under the petitioner's PAN. A rectification petition was filed by the petitioner, which was initially disposed of stating no payment was due, leading to the filing of the present writ petition.Issue 3: Petitioner's claim for refundThe petitioner's counsel highlighted that the total TDS amount for assessment year 2020-2021 was Rs. 18,53,863/-, but the credit given was only Rs. 10,88,863/-. The standing counsel for the respondents agreed that the petitioner was not given credit for the total TDS amount deducted.Judgment:Considering the discrepancy in TDS credit, the court found that the petitioner was entitled to a refund of Rs. 7,65,000/-, the differential amount not initially credited. The impugned orders were quashed, and the respondents were directed to refund the said amount within two months from the date of the order. The writ petition was allowed with no order as to costs, and connected miscellaneous petitions were closed.