2018 (9) TMI 1638

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....etitioner is a private limited company duly registered under the Companies Act and is engaged in carrying out infrastructure development projects. Previously the business was carried on by a partnership firm. This partnership firm was converted into the present private limited company with effect from 24.12.2010. The business of the firm continued in the hands of the company. For all purposes the company succeeded the business of the firm. At the time of this switchover there were several projects either executed in part or though fully executed by the firm defect liability period was not yet over. 3. We are concerned with the assessment year 2014-15 which as can be seen, was the period when the Company was already in existence and the p....

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.... its accounts and taxes have been accordingly paid, since the firm has no existence in eye of law any longer. 4. The second factor is where the payees actually made payments to the company but by error deducted tax and deposited in the account of the firm. These are payments for the ongoing works of the company, being executed by the company, the payments are made to the company but due to oversight or error the tax deducted at source is deposited in the credit of the firm. In this case the Department had asked the petitioner to approach the payees to correct this error. The petitioner had entered into detailed correspondence with such entities but no fruitful result came above. 5. These two sums together account for a total of Rs. 21....

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....itution of the FDs even though the firm had ceased to be in existence. The Banks of which such FDs were therefore offered by way of security, had no choice but to make payment of interest in the name of the firm and also deduct tax in such name. However, according to the petitioner, the income was declared by the company. If so, the company must get the benefit of tax deducted at source. 7. Likewise wherever the payerdeductor had made the payment to the company but by error deposited tax in the account of the firm, the petitioner company must get benefit of such tax deducted at source. The petitioner has no control over the payerdeductor. In the present case those payees are all Government organizations. At the instance of Incometax Depa....