TaxTMI 
TaxTMI 
2020 (3) TMI 434
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....nd both the petitioner and the revenue have filed their versions of the pending arrears for various assessment years, as on date. Vide letter dated 21.01.2020, after considering the consolidated position of pending demands for AYs 2013-14, 2015-16 and 2016-17, the Assessing Authority confirms that there is no shortfall in the tax remitted by the petitioner taking into consideration the TDS credits available for assessment years 2015-16 and 2016-17. 4. According to the petitioner, he has filed applications for rectification of assessment under Section 154 in respect of AYs 2006-07 and 2010-11, which if heard and the errors in assessment corrected, would result in a substantial refund. However, despite this fact having been brought to the notice of the Assessing Officer multiple times during the course of the hearings pending writ petition, these applications remain pending as on date. 5. The revenue has, at long last, circulated a tabulation of the amounts in question, for the three assessment years extracted below: AY 2015-16 Contention of the Department in Counter Affidavit Para 3 of the counter affidavit states demand of Rs. 5,06,210/- raised u/s 143(1) due t....
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....A for A.Y.2016-17 was Rs. 24,07,220/- (S.No.4 Additional Set) but TDS ultimately taken into consideation for computing taxes before ITSC was only Rs. 17,45,527/- (S.No.5 Additional Type Set) B) Originally as per 143(1) demand of Rs. 7,84,960 had arisen due to difference in TDS being of Rs. 24,07,220/- claimed in original return vs. Rs. 17,45,528/- as per 143(1) (Ref Pg.23 in S.No.3 Additional Type Set). This difference was not existing as on date of filing settlement application on 16.10.2018 since the petitioner itself has taken only Rs. 17,45,528/- for computing taxes before ITSC (S.No.5 Additional Type Set) Written Submission of the Department on the above issue Though a deamnd of Rs. 7,84,960 was raised u/s 143(1) due to TDS mismatch of Rs. 6,61,692 (Rs. 24,07,220 claimed in the return-Rs. 17,45,528 available in 26AS, it is noticed on verification of the petitioner's claim that the petitoine considered TDS credit at a lower amount of Rs. 17,45,528 (to the extent of the credit available in 26AS) for the purpose of computation of tax payable as per the Settlement Application. Therefore, there is no additional demand payalbe by the petitioner for the A.Y 2016-17....
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....able for other years within the block of years before ITSC. When adjustment of taxes between years is allowed interest should stop on the date of adjustment. Reference is made to section 245C(1D) dealing with computation of additional amount of income tax in case where the application relates to more than one year which specifically states that the aggregate of the amount of tax is the additional amount of income tax payable in respect of applications referred in 245C(1D). D) No shortfall as on date of filing settlement application if interest u/s 234B is correct computed. Interest u/s234B for A.Y.2012-13, 2013-14 and 2014-15 ought to have been calculated only until such adjustment of excess tax for A.Y.2015-16 (taxes for A.Y.2015-16 paid in March 2018 and May 2018 itself) and not till the date of filing application before ITSC i.e., October 2018. On recalculating interest u/s.234B in this basis the refund due to petitioner as on date of filing settlement application is Rs. 20,18,724/- (Td.Pg.32-37 in S.No.3 Additional Type Set) Department in Counter Affidavit states in Para 6(c) that interest is to be calculated independently for each assessment year till date of payment of tax....
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....Type Set), the same was never received by Petitioner. For A.Y.2010-11, the TDS credit given as per 143(3) order dated 07.01.2016 is Rs. 27,28,824/- (S.No.9 of Additional Type Set). However since, 07.01.2016 but betfore filing settlement application on 16.10.2018, the TDS credit for the A.Y.2010-11 has increased to Rs. 44,70,854/- which is evidenced by Form 26AS S.No.10 of Additional Type Set. So difference between Rs. 44,70,854/- and Rs. 27,28,824/- amounting to Rs. 17,42,099/- not allowed by AO in the assessment order is due as refund even on date of making application before ITSC. No specific comments in this regard in counter affidavit. H) Demand for A.Y.2013-14 is disputed demand and same not to be considered in calculation of tax and interest at the 245D(2C) proceedings before ITSC. I) Additions made through assessment orderu/s.143(3) not offered as income through the application and in fact disputed and pending in appeal before CIT(A) and hence the payment of tax thereon does not arise in terms of section 245C(1) Written Submission of the Department on the above issue As per the 26AS Statement for the AY 2016-17 as on date, TS credit available for the pettitoner i....