2024 (1) TMI 555 - HC - Income Tax

Short grant of TDS credit - petitioner filed a rectification application u/s 154 before the Assessing Officer for the relevant Assessment Year, however, the same has not been decided till date despite several reminder letters - HELD THAT - Keeping in view the limited relief sought in the present writ petition, the same is disposed of with a direction to the respondent No.1 to decide the petitioner s rectification application dated 20th March, 2018 by way of a speaking order in accordance with law within eight weeks and consequential refund along with up to date interest, if any, be released in further eight weeks time.

Summary

Issues involved: Delay in disposal of rectification application u/s 154 for Assessment Year 2015-16 leading to refund of TDS credit.

Judgment Summary:

Issue 1: Delay in disposal of rectification application
The petitioner sought direction for respondent no. 1 to dispose of the rectification application for Assessment Year 2015-16 in a time-bound manner. The petitioner had filed its return of income for the Assessment Year 2016-17, claiming a refund of taxes deducted at source. An intimation u/s 143(1) of the IT Act was issued granting partial credit of taxes claimed. Despite filing a rectification application u/s 154 of the Act in March 2018, the same remained undecided, prompting the petitioner to approach the court.

The court, after hearing both parties, directed respondent no. 1 to decide the rectification application dated 20th March 2018 within eight weeks through a speaking order as per the law. Additionally, the court ordered the release of any consequential refund along with up-to-date interest within a further eight weeks from the date of the order.