2023 (12) TMI 885 - SCH - Income Tax

Rectification of the Assessment Order u/s 143A - whether application for rectification had been filed beyond the period of limitation ? - action for reflection of the TDS deducted against the new PAN Number obtained by the petitioner - Application for granting permission u/s 119(2)(b) - issuance of new pan - TDS deductions not reflected in Form 26AS - Petitioner seeking to rectify its Income Tax return qua the TDS now being reflected under the correct PAN - Income Tax Authorities have also reflected the TDS amount of old PAN against the new PAN Number of the petitioner, as an Association of Persons . As decided by HC 2023 (4) TMI 340 - UTTARAKHAND HIGH COURT rectification application could be filed by the petitioner within four years of the expiry of the Assessment Year. Admittedly, the petitioner did not do so. By resorting to Clause 3 of Circular No. 9/2015, the petitioner could have sought condonation of delay, in moving the rectification application by another two years. The petitioner did not file the rectification application either within the period of limitation, or even within the period for which the delay could be condoned, i.e. up to six years. The petitioner moved the rectification application only in the year 2021, i.e. after over 12 years. HELD THAT - As petitioner submitted that permission may be granted to the petitioner herein to withdraw this Special Leave petition with liberty to make a representation to the Central Board of Direct Taxes (CBDT) under Section 119 of the Income Tax Act, 1961 so as to seek adjustment in view of the rectification made by the Department with regard to the PAN number of the petitioner/entity. The submission of learned senior counsel is placed on record. The Special Leave Petition is dismissed as withdrawn reserving aforesaid liberty to the petitioner. It is needless to observe that if any representation is made by the petitioner to the CBDT, the same shall be considered expeditiously and in accordance with law and a copy of the order passed thereon shall be communicated to the petitioner herein. Since, the plea made by the petitioner herein in these proceedings was rejected on the ground of delay and not on merits as such, the representation to be made by the petitioner to the CBDT shall be considered on its own merits without being influenced by the impugned order(s).

Summary

Issues involved:
The issues involved in the judgment are withdrawal of Special Leave petition with liberty to make representation to CBDT under Section 119 of the Income Tax Act, 1961 for seeking adjustment in view of rectification made by the Department regarding PAN number.

Withdrawal of Special Leave Petition:
The petitioner's senior counsel requested permission to withdraw the Special Leave petition with liberty to make a representation to the Central Board of Direct Taxes (CBDT) under Section 119 of the Income Tax Act, 1961. The Court dismissed the Special Leave Petition as withdrawn, reserving the liberty to the petitioner to seek adjustment in light of the rectification made by the Department concerning the PAN number.

Consideration of Representation to CBDT:
The Court emphasized that any representation made by the petitioner to the CBDT should be considered expeditiously and in accordance with the law. It was specifically mentioned that the representation shall be evaluated on its own merits without being influenced by the earlier rejection of the petitioner's plea in the proceedings on the grounds of delay and not on merits.

This judgment highlights the process of withdrawing a Special Leave petition with liberty granted to the petitioner to approach the CBDT for seeking adjustment following rectification by the Department. The Court ensured that any representation made to the CBDT would be considered independently of the previous rejection, emphasizing expeditious consideration and adherence to legal principles.