2020 (10) TMI 846 - HC - Income Tax

Rectification of mistake u/s 154 - petitioner has prayed for deletion of the interest charged under Section 234A as well as for giving credit of prepaid tax to the tune of ₹ 1,17,54,723/- instead of ₹ 1,10,79,251/- - petitioner states that the respondent has grossly erred in not passing the order on rectification application within the time limit prescribed under Section 154(8) - HELD THAT - Keeping in view the limited prayer, the present writ petition is disposed of with a direction to the respondent to decide the petitioner s rectification applications dated 15th January, 2020, 05th September, 2020 and 07th September, 2020, in accordance with law, by way of a reasoned order within four weeks after giving an opportunity of hearing to the petitioner.

Summary

Issues:
1. Delay in deciding rectification applications under Section 154(8) of the Income Tax Act, 1961.
2. Praying for deletion of interest charged under Section 234A and credit of prepaid tax.

Issue 1: Delay in deciding rectification applications under Section 154(8) of the Income Tax Act, 1961:
The petitioner filed a writ petition seeking a direction for the respondent to decide the rectification applications dated 15th January, 2020, 05th September, 2020, and 07th September, 2020. The petitioner argued that the respondent had erred by not passing the order within the prescribed time limit under Section 154(8) of the Act. The court acknowledged the urgency expressed by the petitioner and heard the matter through video conferencing. Consequently, the court issued notice to the respondent, and the respondent accepted the notice. Ultimately, the court disposed of the petition by directing the respondent to decide the rectification applications within four weeks after giving the petitioner an opportunity of hearing, in accordance with the law.

Issue 2: Praying for deletion of interest charged under Section 234A and credit of prepaid tax:
The petitioner sought the deletion of interest charged under Section 234A of the Income Tax Act, 1961, and requested credit for prepaid tax. The court, considering the limited prayer, disposed of the writ petition with a specific direction to the respondent to decide the rectification applications dated 15th January, 2020, 05th September, 2020, and 07th September, 2020, by way of a reasoned order within four weeks after providing an opportunity of hearing to the petitioner. The court further instructed that the order be uploaded on the website immediately and a copy be sent to the petitioner's counsel via email.

This judgment by the Delhi High Court, delivered by Hon'ble Mr. Justice Manmohan, and Hon'ble Mr. Justice Sanjeev Narula, highlights the importance of timely decision-making on rectification applications under the Income Tax Act, 1961. The court's directive for a reasoned order within a specified timeframe underscores the significance of procedural compliance and fair adjudication in tax matters.