2024 (6) TMI 154 - HC - Income Tax

Business re-organisation - Seeking direction for processing Revised Return u/s 170-A - petitioner was being assessed to tax at Kanpur. Later its assessment came to be centralized at Delhi therefore while return may have been filed at Kanpur the petitioner may be assessed at Delhi - revenue authorities are of the view that the PAN of the merged entity M/s BRG Iron Steel Co. Pvt. Ltd. may first be transferred to Delhi from Kolkata and only then the revised return of the petitioner may be uploaded - Two PAN numbers of the companies M/s BRG Iron and Steel Company Pvt. Ltd M/s Rimjhim Ispat Ltd have been merged yet the petitioner is unable/disabled from uploading its income tax return for the AY 2022-23 - HELD THAT - Amused as we may be but not surprised the desired resolution is reported to have been made within two hours of the last order being passed. Clearly the solution was existing but was not being applied for reasons which we may speculate but not have time to investigate. Consequently it is noted that the income tax return of the petitioner has been uploaded and that there is no grievance remaining. The acknowledgement of the return filed has also been received by the petitioner. Accordingly the proceedings stand disposed of in view of the resolution made. At the same time we have recorded the details of the proceedings in this order only to ensure that the same are communicated to the Chairman C.B.D.T. and also the Member Secretary C.B.D.T. individually by learned counsel for the revenue to consider what actions are required and what procedures are to be put in place to ensure that such inefficiency as has caused loss of valuable money and time both to the citizens and also the Government may be avoided. Minimal remedial measures must be put in place to ensure once the mistake or a genuine grievance of the petitioner is voiced the authorities should remain sensitive to the same and must genuinely seek to resolve the same in realistic time. Any grievance that may remain unresolved beyond reasonable time not only the petitioner was forced to approach this Court but we had to make time by retaining the matter on fresh list on three occasions only to ensure that the respondents do that which they otherwise were obligated to do in law at the first instance.

Summary

Issues:
1. Petitioner's grievance regarding the processing of Revised Return for A.Y. 2022-23.
2. Transfer of PAN from Kolkata to Delhi.
3. Inability to upload online Income Tax Return.
4. Delay in resolving technical issues.
5. Efficiency and sensitivity of revenue authorities.

Analysis:
1. The petitioner, a company, filed a writ petition seeking a mandamus to direct the respondents to process the Revised Return for A.Y. 2022-23. The petitioner's grievance arose due to the inability to upload the online Income Tax Return, despite submitting a physical return. The court observed the jurisdictional complexities as the assessment was centralized at Delhi, although the return was filed at Kanpur.

2. The revenue authorities contended that the PAN of a merged entity needed to be transferred from Kolkata to Delhi before allowing the uploading of the revised return. The court found this stance untenable, emphasizing that the merged entity no longer existed as a separate entity. The court granted time for further instructions but expressed dissatisfaction with the delay in addressing the petitioner's grievance.

3. Despite repeated court orders and extensions granted to the revenue authorities, the petitioner's issue persisted. The court highlighted the inefficiency, noting that a technical glitch causing prolonged inconvenience to the assessee was unacceptable. The court directed the respondent to file a personal affidavit explaining the continued inability to upload the return.

4. Subsequently, the resolution to the issue was reported within two hours of the court's order, indicating a pre-existing solution that was not promptly applied. The petitioner's return was successfully uploaded, and the grievance was resolved. The court disposed of the proceedings while emphasizing the need for efficient and sensitive handling of grievances by revenue authorities to avoid unnecessary delays and inconvenience to taxpayers.

5. The court emphasized the importance of timely resolution of grievances, urging the revenue authorities to implement remedial measures to prevent inefficiencies causing financial and time losses to both citizens and the government. The court's detailed order was to be communicated to the Chairman and Member Secretary of the Central Board of Direct Taxes to prompt actions ensuring prompt and sensitive handling of grievances in the future.