2021 (8) TMI 487

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.... petitions have been filed seeking direction to the respondents to allow the TDS credit on the basis of the TDS certificates issued by the tenants in the name of the Petitioners for the Assessment Year 2009-10. Petitioners also seek cancellation of demand arising from order u/s 143(l)(a) and penalty notice u/s 221 of the Income Tax Act, 1961 [the Act] and a refund of Rs. 2,50,000/- each along with interest. 3. Learned counsel for the petitioners state that the petitioners are cousin brothers as well as Non-Resident Indians and are deriving income from house property and bank interest. They state that the petitioners filed their returns of income tax claiming refund of Rs. 2,50,000/- each that became due as the petitioners paid the full t....

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....in a strict time frame. Mr. Agarwal fairly brings to the notice of this Court the direction given by learned predecessor Division Bench in similar circumstances in Court On its Own Motion vs. Commissioner of Income Tax, 2013 SCC OnLine Del 1060 : [2013] 352 ITR 273 (Del) wherein it is held as under:- "48. The Finance Minister in his recent speech while inaugurating the new Central Processing Cell for Tax Deducted at Source at Aayakar Bhawan in Ghaziabad, U.P. had emphasised the need for 'technology driven tax administration' and had stated as under: "This system will serve two people. As a deductee, I know how much the taxpayer suffers if the TDS is not credited to his or her account." 49. The statement reflects t....

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.... we had emphasised this aspect and asked the Board to take appropriate steps to ameliorate and help the small taxpayers. 50. It is unfortunate that the Board did not take immediate steps after even noticing lacuna and waited till Finance Act, 2012, when Section 234E was enacted. Mere writing of a letter by the Assessing Officer to the deductor by no stretch can be treated as sufficient action on the part of the respondents. Even this, it appears, was done in a few cases as the respondents in the counter affidavit have stated that they have written 20119 communications to the tax deductors, where TDS credit claimed by the taxpayers did not match with the details loaded by the deductors. The Act empowers and authorises the Assessing ....

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....t accept the stand of the Revenue that they can only write a letter to the deductor to persuade him to correct the uploaded entries or to upload the details. Power and authority of the Assessing Officer, cannot match and are not a substitute to the beseeching or imploring of an assessee to the deductor. The directions given above, are in accord with the provisions of the Act, namely, Section 133 and TDS provisions of the Act. If required and necessary, the income tax authorities can obtain prior approval from the Director or the Commissioner. The authorities can also examine whether general approval can be given. The said exercise is undertaken by the Assessing Officer while verifying or examining the return. Section 234E will also require ....