2014 (7) TMI 56 - HC - Income Tax

Attachment of personal rental income u/s 226(3) of the Act Credit for TDS deduction Held that - The TDS amount was Rs.2,29,271/- and if credit is given, the tax liability of the assessee would drastically come down - there was no proper response, the assessee made a representation to the revenue - assessee made a detailed representation to give credit to rental income collected from tenants and the TDS payments for Annual year 2008-2009 and 2010-2011 with interest for which credit was not given - Court directed the revenue to consider the representation Decided in favour of Assessee.

Summary

Issues:
1. Issuance of a Writ of Mandamus to direct consideration of petitioner's representation for orders of attachment.
2. Failure to receive proper response regarding TDS credit and rental income credit.
3. Alleged non-consideration of representations by the respondent leading to the Writ Petition.

Analysis:
Issue 1: The petitioner filed a writ petition seeking a Writ of Mandamus to direct the respondents to consider their representation dated 21.05.2014 and pass orders within a specified timeframe regarding the orders of attachment dated 27.08.2013. The petitioner claimed that due adjustments should be made as per their representation against the demand made by the respondent. The High Court, without delving into the merits of the claim, directed the respondent to consider the representation and pass appropriate orders within eight weeks from the date of the court order.

Issue 2: The petitioner, a regular assessee, faced financial strain and could not pay the income tax due for several assessment years. Despite receiving notices and orders of attachment, the petitioner requested credit for TDS amounts and rental income collected from tenants, which they believed would significantly reduce their tax liability. However, the petitioner alleged that their representations were not properly considered by the respondent, leading to the filing of the writ petition.

Issue 3: The court noted the submissions made by both counsels and the contents of the affidavit. While refraining from assessing the merits of the petitioner's claims, the court directed the respondent to review the representation dated 21.05.2014 and make decisions in accordance with the law within eight weeks. The writ petition was disposed of with this directive, and no costs were awarded.

This judgment highlights the importance of proper consideration of representations by tax authorities and the court's role in ensuring due process in such matters. The court's decision to direct the respondent to review the petitioner's claims within a specified timeframe demonstrates the judicial oversight in addressing grievances related to tax assessments and demands.