9911796707
TMI Blog2012 (10) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... - was paid for the assessment year 2003-04. Therefore in the return form under Annexure-1 and in the statement of income under Annexure-2, the petitioner claimed refund of Rs. 1,70,691/-. Despite filing several representations, since no refund is granted to the petitioner, the present writ petition is filed claiming the above relief. 3. Mr. B. Panda, learned counsel for the petitioner submitted that the refund due to the petitioner is to be paid along with interest @ 12% as provided under Section 243 of the Income Tax Act. If the refund is not granted within a period of three months from the end of the month in which the total income is determined under the Act or in any other case from the end of the month in which the claim for refund is made under Chapter XIX of the Income Tax Act, the Central Government shall pay the assessee simple interest at the rate of 12% per annum on the amount directed to be refunded. Under the scheme of Income Tax Act, once the return is filed, the same is to be processed under Section 143 (1) of the Income Tax Act. After the return is processed, question of refund arises on the basis of return and then refund is made to the assessee. In the instant ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry action had been duly taken by the Assessing Officer/Range Officer for processing the return of income and to obtain administrative approval for refund of amount exceeding Rs.1 lakh in the case of M/s.Santuka Agencies for the assessment year 2003-04. From verification of return of income filed by the partnership firm on 01.09.2003 along with copies of TDS certificates, computation of total income statement, tax audit report, P & L Account, balance sheet for the financial year 2002-03, it transpires that as per the TDS certificates the assessee had earned gross interest income of Rs. 11,01,577/- on which TDS was made by the payer for Rs. 11,567/-. Similarly the assessee had executed contract works for gross amount of Rs. 1,57,531/- from which TDS was made by the contractee amounting to Rs. 3,310/-. Further the TDS certificates in respect of commission payment revealed that the gross commission amount was Rs. 17,31,891/- from which the payer had deducted TDS for Rs. 96,514/-. The sum total of TDS amount was Rs. 2,15,491/- and the sum total of receipts under the head interest, contract works and commission taken together amounted to Rs. 29,90,999/-. The verification of tax audit rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of gross receipts from interest income, gross receipt from contract works and gross receipt from commission as per TDS certificate with the figures shown in the P&L Account for the financial year 2002-03. After submission of such clarifications/supporting documents, it can be ascertained as to whether the entire TDS amount is available to the assessee's credit or only a part of the TDS can be allowed corresponding to the gross turnover which has been disclosed in the P&L Account. No action on the petition filed by the petitioner on July, 2008 i.e. after five years from the date of filing of the return would be taken by the Assessing Officer as the return filed on 1.9.2003 could not be readily available. 7. On the rival contentions of the parties, the question that arises for consideration of this Court is to whether the petitioner-assessee is entitled to get refund of Rs.1,70,691/- as claimed in its return filed on 01.09.2003 for the assessment year 2003-04 along with interest as provided under the Income Tax Act, 1961 and the Income Tax Authorities are not justified in not granting the refund claimed by the petitioner. 8. The undisputed facts are that the petitioner filed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of assessee to get refund, the assessing officer has to cause necessary enquiry and after giving opportunity to the assessee shall come to a conclusion. Though there is no specific provision empowering the assessing officer to investigate such a claim, such a power is implicit and inherent in the assessing officer as would be evident from a plain reading of Section 237. 11. The Allahabad High Court, in the case of Babu Ram Chandra Bhan v. ITO [1991] 190 ITR 260 while considering the provision of Section 237 held that a person becomes entitled to refund only when he satisfies the Assessing Officer that a certain amount is due to him. This satisfaction necessarily involves an inquiry where there is a dispute as to the entitlement to the amount to be refunded. While there is no specific provision empowering the Income-tax Officer or the Assessing Officer to investigate such a claim, such a power is implicit and inherent in him as would be evident from a reading of section 237 of the Income-tax Act, 1961. 12. In the instant case, specific case of the opp. parties is that on verification of tax audit report and P & L Account it reveals that there is no separate head of receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant portion of paragraphs 10 and 13 of the counter affidavit. "10................The assessee having not apparently complied with the clarifications called for vide letter dated 01.06.2004 served on the assessee on 01.07.2004, the Income Tax authorities could not give credit to the entire TDS claimed in so far as there was no mention in the P & L Account about any interest income or income from execution of contract works and also on account of discrepancy between commission income shown in the P & L Account and gross commission received as per TDS certificates. In this context the petitioner has an alternative efficacious remedial measure available right now to produce relevant reconciliation of gross receipts from interest income/gross receipt from contract works/gross receipt from commission as per TDS certificates with the figures shown in the P & L Account for the financial year 2002-2003. After submission of such clarifications/supporting documents it can be ascertained as to whether the entire TDS amount is available to the assessee's credit or only a part of the TDS claim can be allowed corresponding to the gross turnover which has been disclosed in the P & L Account. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
