2024 (9) TMI 1575 - SCH - Income Tax

Scope of statutory alternative remedy - Special Leave Petition arises out of the order passed by the High Court 2024 (2) TMI 1437 - DELHI HIGH COURT dismissing the writ petition filed by the petitioner questioning the imposition of surcharge and raising demand - HELD THAT - During the pendency of the present proceedings, there is yet another demand notice dated 28.05.2024 raised for the AY 2023-2024, as per which surcharge computed at 37% and a demand has been raised. Revenue submits that this error is occurring as the Central Processing Centre (CPC) has not adopted the mechanism of deleting excess calculation as it is programmed to so calculate and raise a demand. The technological impediment cannot be a reason for harassing an assessee year after year. Immediate steps must be taken by the Revenue to upgrade the software or take such other steps as may be necessary to ensure that such mistake does not occur in future. Insofar as the order impugned is concerned, the dispute has already been resolved and the amount is said to have been remitted on 06.06.2024. However, for the Assessment Year 2023-2024, the Revenue shall take immediate steps and communicate the order of withdrawal of the excess surcharge amount within six weeks from the date of the receipt of the order. The Central Board for Direct Taxes shall also take necessary steps for rectifying the software as the issue may not be resolved by the Jurisdictional Assessing Officer. Special Leave Petition is disposed of.

Summary

The Supreme Court dismissed the writ petition challenging surcharge imposition for Assessment Year 2022-2023 due to availability of alternative remedy. The Revenue rectified excess surcharge for that year and remitted the amount. Another demand notice for Assessment Year 2023-2024 was raised due to a software error, prompting the Court to urge the Revenue to upgrade software to prevent future mistakes. The Court directed the Revenue to communicate withdrawal of excess surcharge amount within six weeks and instructed the Central Board for Direct Taxes to rectify the software. The Special Leave Petition was disposed of.