Tax Notices Overturned for AY 2009-12; Court Directs Revenue to Process Refunds Due to Favorable Prior Decisions.

The HC set aside the impugned notices and orders under Section 245 of the Income Tax Act, 1961, concerning AY 2009-10, 2010-11, and 2011-12, as previous decisions favored the petitioner. The Revenue was directed to process any refunds due. The petitioner's challenge was limited to these years, and the court allowed the petition. The pending application was disposed of accordingly.

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Issues:
Challenge to intimation and notice under Section 245 of the Income Tax Act, 1961 regarding outstanding demand for TDS not deposited by employer, adjustment of demands for various assessment years, applicability of Section 205 of the Income Tax Act, 1961, interpretation of Form 16A, legality of adjustments made by the Revenue, previous court decisions on similar matters.

Analysis:

The petitioner challenged an intimation and notice under Section 245 of the Income Tax Act, 1961, regarding an outstanding demand of Rs. 11,07,970/- for TDS not deposited by the employer for assessment years 2009-10 and 2011-12. The petitioner argued that the Revenue cannot recover TDS from him due to Section 205 of the Act and government instructions. The petitioner was a Co-Pilot whose employer had deducted TDS from his salary but failed to deposit it with the tax authorities. The TDS amount was reflected in Form 16A, and the petitioner contended that he should not be liable for this tax deduction.

The Revenue pointed out adjustments made for different assessment years in a tabular statement attached to the notice. The adjustments were for AY 2009-10, AY 2010-11, AY 2011-12, and AY 2017-18. The Revenue argued that adjustments for AY 2009-10, 2010-11, and 2011-12 were covered in favor of the petitioner by a previous court decision. However, the adjustment for AY 2017-18 was permissible as it was a recoverable amount. The petitioner did not challenge the adjustment for AY 2017-18, which had been paid.

The court noted that the issue of adjustments for AY 2009-10, 2010-11, and 2011-12 was already decided in favor of the petitioner in a previous court decision. Therefore, the impugned notices and order were set aside for these assessment years, and the Revenue was directed to process any refund due. The petitioner's challenge was limited to the earlier assessment years, and the court allowed the petition accordingly. The pending application was also disposed of in light of the judgment.

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