TaxTMI 
TaxTMI 
2014 (5) TMI 520
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....x was deducted at source by the Government Department (hereinafter referred to as "TDS"). For the Assessment Year 2010-11, the petitioner filed his income tax return in Form-4, showing his gross income at Rs.6,86,650/-. The petitioner disclosed that he was liable for payment of tax amounting to Rs.82,295/- and consequently, claimed a refund of Rs.2,32,370/-. The returns were processed by the Central Processing Centre of the Income Tax Department at Bangalore. The returns were accepted under the deemed assessment scheme. The Central Processing Centre, Bangalore issued an income tax refund of Rs.43,740/-. No intimation was given to the petitioner as to why the balance amount of Rs.1,88,630/- was not refundable. The petitioner, accord....
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....e parties, we have heard Sri Nitin Kesarwani, the learned counsel for the petitioner and Sri Shambhu Chopra, the learned counsel for the Income Tax Department. The difficulty faced by the tax payers relating to credit of tax deducted at source, i.e., TDS, which stands paid by the deductor was considered by the Delhi High Court in a Public Interest Litigation in Court On its Own Motion vs. Commissioner of Income Tax, 2013 (352) ITR 273. The Court found that a large percentage of cases were coming up where an assessee was entitled to be given the credit of TDS, which had been deducted by the deductor, but, was not being given credit by the Income Tax Department on account of the fact that the TDS was not reflected in Form-26AS for various ....
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....t rectification and getting corrections made by the deductor and to get them uploaded was not an easy task. Filing a revised return or getting the application under Section 154 processed, was not only daunting, but expensive and that the problem of not getting the credit was being faced by a majority of small and middle class tax payers, including senior citizens. The Delhi High Court, accordingly, issued a mandamus directing the Central Board of Direct Taxes (hereinafter referred to as the "CBDT") to issue directions with regard to giving credit of unmatched and mismatched TDS certificates. Pursuant to the said decision of the Delhi High Court, the CBDT issued instruction No.5 of 2013, dated 8.7.2013, directing that where the assessee a....
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....nded and the balance amount was not refunded on account of the TDS being mismatched. It is also admitted that the TDS certificates were also filed by the assessee. It is also an admitted position that the deductor in the instant case is a Government Department. We find from a perusal of the counter affidavit that no effort was made by the assessing officer to verify the fact as to whether the deductor had made the payment of the TDS in the government account. On the other hand, the Income Tax Department has shown their helplessness in not refunding the amount on the sole ground that the details of the TDS did not match with the details shown in Form 26AS. The stand of the respondents is, that a refund could be allowed only on matching th....
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.... amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess." Further, Section 243 relates to payment of interest on delayed refund. For facility, the said provision is extracted hereunder: "243. (1) If the [Assessing] Officer does not grant the refund,- (a) in any case where the total income of the assessee does not consist solely of income from interest on securities or dividends, within three months from the end of the month in which the total income is determined under this Act, and (b) in any other case, within three months from the end of the....