2020 (3) TMI 1083 - HC - Income Tax

Submission of details of Deduction of Tax at Source on the amount deposited by the petitioner with the second respondent in Term Deposit - capital gain accounts - Form - 26AS, instead of Form No.16-A to the Income Tax Department, first respondent herein and issue a certificate to the petitioner under Section 203AA of the Income Tax Act, 1961 within stipulated time - HELD THAT - 1st respondent, based on instruction, submitted that though it is true that the Bank has deducted tax from the petitioner's account and paid to the Income Tax Department, the Bank did not generate Form 26A and therefore, such payment has not reflected in the records maintained by the 1st respondent. However, as the Bank has given the Manual Form 16A to the petitioner, he can approach the 1st respondent by making appropriate application by enclosing Form 16A for the purpose of considering the claim of the petitioner. She further submitted that if the petitioner approaches the 1st respondent with the above required application and enclosures, the 1st respondent will consider the same and pass appropriate orders. In view of the above stated submissions made by the learned counsel for the 1st respondent, this Writ Petition is disposed of by directing the petitioner to approach the 1st respondent by making application with necessary enclosures. On receipt of such application, the 1st respondent shall pass orders within a period of four weeks thereafter.

Summary

Issues:
1. Mandamus sought to direct submission of Deduction of Tax at Source details in Form 26AS.
2. Discrepancy in tax payment records due to the absence of Form 26A generation by the Bank.
3. Resolution of the issue through a directive for the petitioner to approach the Income Tax Department with necessary application and enclosures.

Analysis:
The petitioner filed a writ petition seeking a Mandamus to compel the second respondent Bank to submit the Deduction of Tax at Source details on the amount deposited by the petitioner in Term Deposit capital gain accounts. The petitioner emphasized the need to submit the details in Form 26AS to the Income Tax Department instead of the Manual Form 16A provided by the Bank. The petitioner specifically mentioned three accounts and the period of three years from 2008 to 2020 for which the tax details were sought. The petitioner highlighted the requirement for a certificate under Section 203AA of the Income Tax Act, 1961 within a stipulated time frame.

During the hearing, it was revealed that the Bank had deducted tax from the petitioner's account but failed to generate Form 26A, leading to a discrepancy in the tax payment records maintained by the Income Tax Department. The senior standing counsel for the Income Tax Department acknowledged this discrepancy and advised the petitioner to approach the Department with an application enclosing the Manual Form 16A provided by the Bank. It was assured that upon submission of the required documents, the Department would consider the petitioner's claim and take appropriate action.

Considering the submissions made by the counsel for the Income Tax Department, the Court disposed of the writ petition by directing the petitioner to submit an application with necessary enclosures to the Department. The Department was instructed to review the application and pass orders within four weeks from receipt. No costs were imposed, and the connected miscellaneous petition was closed as a consequence of the judgment. The resolution of the issue through a directive for the petitioner to approach the Income Tax Department with the required documentation reflects a practical solution to address the discrepancy in the tax payment records and ensure proper consideration of the petitioner's claim within a specified timeline.