2023 (6) TMI 1073 - HC - Income Tax

Maintainability of Writ Petition simultaneously while filing the statutory appeal before the CIT(A) - Rejection of application for rectification u/s 154 - Denial of full TDS credit - there is shortfall in the grant of tax credit that ought to have been as per Form 26AS available at that point in time - HELD THAT - As petitioner has availed statutory remedies and rectification as well as appeal and as on date, the appeal filed by it challenging the very order impugned in this Writ Petition, is pending. No justification for the petitioner to be permitted to ride multiple horses for the same cause of action. Hence, let the petitioner pursue the appeal filed before the first appellate authority. While disposing the appeal, the appellate authority, will needless to say, consider the full TDS available to the petitioner's credit at the relevant point in time. Writ Petition stands dismissed in terms of the above order.

Summary

Issues involved: Challenge to order u/s 154 of Income Tax Act for AY 2020-21; Misconceived Writ Petition; Shortfall in grant of tax credit; Multiple remedies availed by petitioner.

Challenge to order u/s 154 of Income Tax Act for AY 2020-21:
The Writ Petition challenges an order dated 05.04.2023 passed u/s 154 of the Income Tax Act, 1961 for the assessment year 2020-21. The petitioner had filed a statutory appeal against the said order, which is currently pending before the first appellate authority. The petitioner seems to have filed the Writ Petition due to an apprehension that the relief sought may not be effectively considered or granted.

Misconceived Writ Petition:
The Court notes that the petitioner has already availed statutory remedies such as rectification and appeal, with the appeal challenging the same order impugned in this Writ Petition still pending before the first appellate authority. The Court finds no justification for allowing the petitioner to pursue multiple remedies for the same cause of action.

Shortfall in grant of tax credit:
The petitioner challenged the intimation u/s 143(1) on the grounds of a shortfall in the grant of tax credit, which should have been as per Form 26AS available at that time. Despite a rectification petition being disposed of by re-processing the return and stating that no payment was due, the enhanced tax credit sought by the petitioner was not granted due to an error in the rectification petition. Subsequently, a second rectification petition was filed, leading to the impugned order.

Multiple remedies availed by petitioner:
The Court directs the petitioner to pursue the appeal filed before the first appellate authority, where the full TDS available to the petitioner's credit at the relevant time will be considered. The Writ Petition is dismissed, and no costs are awarded. The connected Miscellaneous Petition is also dismissed.