2023 (7) TMI 934 - HC - Income Tax

Reassessment proceeding on error in the return filed concerning tax deducted at source, i.e., in Form 26Q - HELD THAT - As petitioner, submits that the revised Form 26AS, which was downloaded by the petitioner on 24.04.2023, discloses that the error has been corrected. Resultantly, no withholding tax in relation to the subject transaction is reflected in the revised Form 26AS, which concerns the petitioner. Given the aforesaid position, revenue cannot but accept, that the prayers made in the writ petition would have to be allowed.The impugned orders and notices are set aside.

Summary

Issues involved: Incorrect tax deduction at source leading to reassessment proceedings for Assessment Year 2019-20.

Details of the judgment:

Issue 1: Incorrect TDS return triggering reassessment
The petitioner's grievance stemmed from an initial error in the tax deducted at source return filed by Axiscades Engineering Technologies Limited (AETL), incorrectly showing that the petitioner received Rs. 1,09,94,821 from AETL. However, it was Siemens Industry Software (India) Pvt. Ltd. (SISPL) that actually received the amount. The rectification in the TDS return by AETL corrected this error.

Issue 2: Correction of error and relief for the petitioner
The revised Form 26AS downloaded by the petitioner revealed the correction of the error, with no withholding tax related to the transaction reflected in the revised form. Consequently, the court accepted that the prayers in the writ petition should be allowed, leading to the setting aside of the impugned orders and notices.

Issue 3: Disposal of the writ petition
The court disposed of the writ petition in favor of the petitioner, with the Assessing Officer directed to take further steps in law only if deemed necessary. The pending interlocutory application was closed, and parties were instructed to act based on the digitally signed copy of the order.