TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 334
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.... alternative to the Prayers above, issuance of directions to Respondents No. 3 to 5 (Revenue) to deposit the amount of Rs. 7,86,33,649/- along with statutory interest pertaining to TCS in the Permanent Account Number of the Petitioner; d. Declaration that the action of Respondents No. 1 and 2 (CCL) and Respondents No. 3 to 5 (Revenue) in neither granting refund of monies illegally realised from the Petitioner nor facilitating adjustment of such monies towards future tax liability of the Petitioner is illegal, arbitrary and violative of Article 14 and 265. 3. The case of the Petitioner Company is that the Respondents No. 1 and 2 forcefully realised Rs. 7,86,33,649/- from the Petitioner in the guise of Tax Collected as Source (hereinafter to be referred as 'TCS') for the period FY 2012-2013 to the First Quarter of FY 2017-2018. 4. Learned counsel for the petitioner contended that the benefit of Section 206C(1A) of the Income Tax Act, 1961 ought to have been granted to the Petitioner once Form 27C has been submitted by the Petitioner and there exists no material to conclude that the declaration forming part of such Form is false. He contended that once Form 27C has been submitted ....
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....t order dated 10th November, 2017 does not disclose the name of the petitioner. As such, the collection of the amount of Rs. 7.86 crores from the petitioner as tax deducted at source was neither backed by the assessment order passed by the Deputy Commissioner of Income Tax (T.D.S. Circle) Ranchi dated 10.11.2017 nor such collection of tax was actually deposited in the coffers of the Central Government. The amount therefore lies illegally retained in the hands of the C.C.L. which it is obliged to refund." Accordingly, upon consideration of the arguments placed by the parties to the lis, this Court recorded as follows: "8. The relevant material details taken note from the pleadings on record hereinabove and consideration of the rival submission of the parties present a situation that Rs. 7.86 Crores has been admittedly collected by the C.C.L in the name of tax collected at source but the relevant details thereof required to be submitted to the Income Tax Department in the Form 27 EQ have not been submitted nor the T.C.S. certificate in lieu thereof has been issued in favour of the petitioner. The above position cannot be countenanced in law. In case the collection of tax deducted ....
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....er, i.e., the principal quantum amounting to Rs. 6,25,58,318.89/-, and would not contain the interest component amounting to Rs. 1,60,75,329.93/-; the Petitioner filed its Rejoinder dated 21.02.2023 whereby it brought on record its grievances in relation to the procedure prescribed by Respondents No. 3 to 5 (Revenue), vide Affidavit dated 06.12.2022, for the issuance of TCS certificates in favour of the Petitioner. The submissions placed by the Petitioner in this regard specially made in Para-10, 11, 12, 14 & 16 are detailed as under: (i) The Petitioner apprehended that if TCS certificates come to be issued in favour of the Petitioner by Respondents No. 1 and 2 (CCL) by following the procedure laid down by Respondents No. 3 to 5 (Revenue) vide Affidavit dated 06.12.2022, then the benefit of credit of TCS would not actually inure to the Petitioner. (ii) Under the returns filed for the period of dispute, the Petitioner had neither accounted for, nor claimed such credit of TCS, as on the date of filing of the returns TCS certificates had not been issued in favour of the Petitioner. Such being the case, the Petitioner apprehended that the IT Department would not allow the TCS cred....
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....rst quarter of Financial Year 2017-18 in view of the time lapse when it has been issued. The Department has agreed to allow CCL to issue TCS Certificate for the relevant years pursuant to the order of this Court only. Therefore, effect of these TCS certificates for the relevant Financial Years needs to be given effect to by the concerned Assessing Officer, otherwise, it will be of no use. ii. Since the TCS Certificate has been issued after five years of deduction made by the CCL, petitioner is entitled to interest over the amount deducted under section 244A of the Income Tax Act. iii. The interest component on TCS amounting to Rs. 1,60,75,329.93 also deserves to be restituted to the petitioner upon issuance of TCS certificate for the relevant Financial Years." Upon recording the aforesaid, this Court issued directions at para 5 in the order dated 06.04.2023 which is extracted herein below: "5. Learned counsel for the Income Tax Department Mr. Ratnesh Nandan Sahay seeks and is allowed two weeks' time to obtain categorical instruction on all the issues and file counter affidavit at least two days in advance." 9. In compliance to the order dated 06.04.2023 passed by this Court....
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....said Supplementary Affidavit dated 13.06.2023 filed by the Revenue, the petitioner company filed a Reply-Affidavit dated 11.07.2023. Vide the Reply-Affidavit dated 11.07.2023, the Petitioner highlighted that it was not amenable to grant of relief in terms of Option No. 1 since the said solution did not involve the refund of the interest component of Rs. 1,60,75,329.93/-, and that further the said solution was time-consuming and circuitous thereby serving as a mere paper relief. Accordingly, the Petitioner prayed for the grant of relief in terms of Option No. 2 and expressly undertook not utilize the TCS certificates previously issued to it by Respondents No. 1 and 2 (CCL) so as to facilitate the grant of relief. The Petitioner further prayed that the grant of relief be effected in a time-bound manner. The relevant portion of the Affidavit is hereunder: "15. Accordingly, the Petitioner prays before this Hon'ble Court that relief in terms of 'Option No. 2' as detailed in the forgoing paras, which serves as the only effective relief between the two solutions proposed by Respondents No. 3 to 5, be granted in favour of the Petitioner, regardless of the consequences it may have for o....
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....rt and the Supplementary Affidavit 13.06.2023 of Respondents No. 3 to 5 (Revenue), Reply-Affidavit of the Petitioner dated 11.07.2023 and the Rejoinder/Reply dated 04.08.2023 of Respondents No. 1 and 2 (CCL), the following key points emerge: (i) The root cause of the present Lis lies in the illegality committed by the Revenue in compelling Respondent No. 1 and 2 (CCL) in effecting TCS qua the transactions of purchase of coal which according to the Petitioner was genuinely used in generation of power. Such TCS was affected by Respondent No. 1 and 2 (CCL) even though appropriate Form 27C was issued by the Petitioner with a verification that the goods so purchased would be used for the purposes of generation of power. (ii) The above stand of the Respondents No. 3 to 5 (Revenue) also lead to Respondent No. 1 and 2 (CCL) being declared as an Assessee-in-Default for not having collected TCS in respect of transactions made with various parties where one such party was the Petitioner. That allegation has been quashed by the Ld. ITAT vide its order dated 23.01.2023. (iii) While in its Petition the Petitioner had prayed that the illegal sums collected as TCS should be forthwith refunde....
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....t thereon, i.e., Rs. 6,25,58,318.89/- (towards TCS) plus Rs. 1,60,75,329.93/- (towards interest), amounting in toto to Rs. 7,86,33,649/-, be refunded by Respondents 3 to 5 (Revenue) to Respondents No. 1 and 2 (CCL) who should thereafter forthwith refund the same to the Petitioner in a time-bound manner. (a) The Refund by Respondents No. 3 to 5 (Revenue) to Respondents No. 1 and 2 (CCL) referred to above is directed to be affected within six weeks from the date of this order and in turn the Respondents No. 1 and 2 (CCL) shall refund the same to the Petitioner within two weeks thereafter. Should any of the Respondents delay in meeting the aforementioned timelines then statutory interest as per the Act on Refund will be granted in favour of the Petitioner and payable by the defaulting Respondent. (b) Taking cognizance of the undertaking made by the Petitioner vide its Reply-Affidavit dated 11.07.2023 after the directions as above are implemented in substance by the aforementioned Respondents; then the Petitioner would abstain from utilizing the TCS certificates previously issued to it so as to facilitate the grant of relief in terms of 'Option No. 2'. 14. At this stage it is pert....