2021 (8) TMI 487 - HC - Income Tax

Rectification application u/s 154 - seeking direction to the respondents to allow the TDS credit on the basis of the TDS certificates issued by the tenants in the name of the Petitioners for the Assessment Year 2009-10 - HELD THAT - Keeping in view the fact that the rectification applications filed by the petitioners have not been decided till date and the TDS certificates issued by the tenants in the name of the petitioners have allegedly not been credited to the accounts of the petitioners on account of wrong PAN numbers mentioned by the tenants, this Court in compliance with the directions given by the learned predecessor Bench in Court On its Own Motion vs. Commissioner of Income Tax 2013 (3) TMI 316 - DELHI HIGH COURT directs the AO to take remedial measures as mentioned in the said judgment as well as to decide the rectification applications filed by the petitioners in accordance with law within twelve weeks.

Summary

Issues:
Seeking direction for TDS credit based on certificates, cancellation of demand & penalty, refund with interest for Assessment Year 2009-10.

Analysis:
The petitioners, Non-Resident Indians deriving income from property and interest, filed returns seeking refunds not granted under assessment orders. Rectification applications under Section 154 detailed unconsidered TDS amounts, but no action was taken by the Assessing Officer (AO). Notices for demand and penalty were issued, with subsequent letters and requests ignored. The petitioners highlighted the respondents' inaction despite multiple communications.

Analysis Continued:
The respondents accepted notice and agreed to dispose of the petitions with a direction to the AO to decide rectification applications promptly. Reference was made to a previous Division Bench direction emphasizing the need for rectification in cases where TDS credit was not given due to deductor errors. The judgment highlighted the challenges faced by taxpayers due to discrepancies in TDS credits and stressed the responsibility of the Revenue to rectify such issues promptly.

Analysis Continued:
The Court directed the AO to take remedial measures as per the previous judgment within twelve weeks and decide on the rectification applications. The petitioners were given the liberty to approach the Court if the order was not complied with in the specified time frame. The order was to be uploaded on the website immediately, with a copy sent to the counsel via email for reference.

This comprehensive analysis of the judgment outlines the issues raised by the petitioners, the responses from both parties, the Court's decision based on previous directives, and the specific directions given to the Assessing Officer to rectify the TDS credit discrepancies promptly.