2018 (10) TMI 246 - HC - Income Tax

Non credit of advance payment of tax - Refund claim - Held that - From the perusal of the communication of the petitioner dated 20.10.2015 and the certificate issued by the said Bank dated 27.08.2003, it is evident that the claim of the petitioner in making the advance payment of ₹ 25,000/- has not been considered by the Assessing Officer, while making the claim of ₹ 30,609/-, in respect of the assessment year 2002-03. The second respondent is directed to consider the claim of the petitioner in respect of assessment year 2002-03 in making the advance payment of tax of ₹ 25,000/- through his communication dated 20.10.2015 also by considering the certificate issued by the Chennai Central Cooperative Bank Ltd., Mylapore Branch, Chennai, dated 27.08.2003 and pass appropriate orders accordingly on merits

Summary

Issues:
Challenge to assessment proceedings for refund claim of assessment year 2015-16.

Analysis:
The petitioner, a Kartha of Hindu Undivided Family, challenged the assessment proceedings of the second respondent regarding a refund claim for the assessment year 2015-16. The petitioner claimed a refund of ?54,030 for that year. The Assessing Officer initially determined a refundable amount of ?56,188 for the petitioner under Section 143(1) of the Income Tax Act. However, the same day, the officer adjusted a refund of ?56,190 towards alleged outstanding demands for assessment years 2004-05, 2010-11, 2002-03, and 2008-09, leaving a balance outstanding demand of ?69,007. The petitioner contended that there were no arrears for the years 2004-05, 2010-11, and 2008-09, and the adjustment was unjustified. Additionally, the petitioner argued that an advance tax payment of ?25,000 for the year 2002-03 was not considered by the Assessing Officer.

In response, the respondents stated that adjustments made for the years 2004-05, 2010-11, and 2008-09 were subsequently refunded to the petitioner. They acknowledged the petitioner's request regarding the advance tax payment for the year 2002-03 and assured that appropriate orders would be passed after considering the relevant documents. The petitioner's claim of outstanding demands for the mentioned years was disputed by the Revenue, and it was clarified that there were no arrears for the year 2010-11.

The Court noted that the dispute primarily revolved around the assessment year 2002-03, where the Revenue claimed an outstanding arrear of ?30,609. The petitioner provided evidence of the advance tax payment of ?25,000, which was not considered by the Assessing Officer. The Court directed the second respondent to review the petitioner's claim regarding the advance tax payment for the year 2002-03, considering the evidence provided, and pass appropriate orders within three weeks. Subsequently, the Court instructed that consequential orders on the refund amount determined for the assessment year 2015-16 should be made based on the decision regarding the claim for the year 2002-03. No costs were awarded in the judgment.