2017 (9) TMI 1105 - HC - Income Tax

TDS credit - Liability to pay interest on the delayed remission of the above TDS amount - Held that - The accounts have been reconciled and the necessary rectification orders have been passed allowing the TDS credit as per Form-26AS details in the case of the Petitioner. In that view of the matter, no further directions are called for as far as the Income Tax Department is concerned. In the considered view of the Court, the liability to pay interest to the Petitioner on the delayed remission of the above TDS amount constitutes an independent cause of action for which this writ petition involving the Income Tax Department need not be kept pending. Liberty is, however, granted to the Petitioner to pursue the claim for interest independently against the CDA. It is made clear that the Court has not expressed any opinion on the merits of such claim of the Petitioner.

Summary

The High Court of Delhi passed an order allowing TDS credit as per Form-26AS details for the Petitioner. The Controller of Defence Accounts delayed remitting TDS amounts for AY 2009-10 and 2010-11, leading to the Petitioner's entitlement to interest on the withheld amount. The Court granted liberty to pursue the interest claim independently against the CDA, separate from the ongoing writ petition involving the Income Tax Department. The petition and pending application were disposed of.