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TMI Blog2014 (8) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... se intimations were issued under Section 200-A of the Act. The petitioner accepted those intimations. When the matter stood thus, the petitioner received Annexures C1 & C2 and thereafter, Annexures F1 & F2 and Annexures G1 & G2. It is necessary to note that Annexures: C1 & C2 were initially assailed in the writ petition and during the pendency of the writ petition, Annexures: F1 & F2 and G1 & G2 were issued. Those annexures have also been assailed after amending the writ petition. 3. I have heard the learned counsel for the petitioner and learned Standing Counsel for respondents and perused the material on record. 4. It is contended on behalf of the petitioner that, while exercising powers under Clause (c) of sub Section (1) of Section 154 of the Act, the concerned authority had to comply with sub-section (3) of Section 154 of the Act, particularly, where a rectification which has the effect of enhancing an assessment or reducing refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee. But, in the instant cases, the impugned intimations at Annexures: C1 & C2, F1 & F2 and G1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I have considered the rival submissions of the parties in light of Sections- 200, 200-A and Section-154 and Section-156 of the Act as well as the scheme. Under Section 200 of the Act, any person deducting any sum under the provisions of the foregoing sections, has to prepare a statement and file it before the concerned authority. That statement has to be verified and processed in terms of Section 200-A of the Act. Section 200 was re-numbered as sub-section (1) thereof by the Finance Act, 2002 w.e.f. 01.06.2002. Sub-section (3) of Section 200 was introduced w.e.f. 01.04.2005 under the Finance (No.2/2004) Act. Section 200-A deals with the Processing of Statements of Tax Deducted at Source, which was inserted by the Finance (No.2/2009) Act w.e.f. 01.04.2010. Considerations that have to be made while processing Statement filed under sub-section (3) of Section 200 are envisaged under Section 200-A of the Act. Sub-section (2) of Section 200-A empowers the Central Board of Direct Taxation (CBDT) to make a scheme for centralized processing of statements of tax deducted at source to expeditiously determine the tax payable by, or the refund due to, the deductor as required under sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to add, delete or update the information furnished in the statement of tax deducted at source furnished under subsection (3) of Section 200 of the Act; h) "deductor' means a person deducting tax in accordance with the provisions of Chapter XVII of the Act; i) "Director General" means the Director General of Incometax (Systems) appointed as such under sub-section (1) of section 117 of the Act; j) 'Portal" means the web portal of the authorized agency or the web portal of the Cell, as the case may be; k) 'Statement of tax deducted at source" means statement of tax deducted at source furished under sub-section (3) of section 200 of the Act. (2) The words and expressions used herein but not defined and defined in the Act shall have the meaning respectively assigned to them in the Act. 3. Centralised Processing Cell.- The Borad may set up as many Centralised Processing Cells as it may deem necessary and specify their respective jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the deductor, the order under section 154 of the Act passed by an Income-tax authority of the Cell shall be deemed to be a notice of demand under Section 156 of the Act. 7. Adjustment against outstanding tax demand,- Where a refund arises from the processing of a statement under this scheme, the provisions of Section 245 of the Act shall, so far as may be, apply. 8. Appeal,- (1) Where a statement of tax deducted at source is processed at the Cell, the appeal proceeding relating to the processing of the statement shall lie with the Commissioner of Income-tax (Appeals) having jurisdiction over the Assessing Officer who has jurisdiction over the deductor and any reference to Commissioner of Income-tax (Appeals) in any communication from the Cell shall mean such jurisdictional Commissioner of Income-tax (Appeals). (2) The Assessing Officer who has jurisdiction over the deductor shall submit the remand report and any other report to be furnished before the Commissioner of Income-tax (Appeals) and an order, if any, giving effect to appellate order shall be passed by such Assessing Officer. &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at source; d) form of rectification application; e) the manner of verification of rectification application; f) receipt and processing of rectification applications in the Cell; g) the mode and format of the acknowledgement to be issued by the Cell for the receipt of any document; h) the mode of authentication of any document or information submitted to the Cell, including authentication by digital signature or electronic signature; i) alidation of any software used for electronic filing of correction statement of tax deducted at source or rectification application; j) Provision of web portal facility including login facility, tracking status of correction statement of tax deducted at source or statement of tax deducted at source, display of relevant details of tax deduction or refunds to the tax payer or deductor, as the case may be, and facility of download of relevant infor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncreasing the liability of the deductor, an intimation to that effect shall be sent to the deductor electronically by the Cell and the reply of the deductor shall be furnished in the form and manner specified by the Director General. In this context, the argument of the counsel for the petitioner is that the impugned intimations are in the nature of demands made under Section 156 of the Act, as it expressly states so and even what is stipulated in sub-clause (3) of Clause (6) that an intimation calling for a reply has not been given to the petitioner, instead impugned annexures straightway make a demand for the payment of alleged dues under Section 156 of the Act. It is contended that not only is there violation of sub-clause (3) of Clause (6) of the Scheme, but there is also violation of sub-section (3) of Section 154 of the Act. 10. On perusal of the impugned intimations in light of sub-clause (3) of Clause (6) of the Scheme, it is noted that, no doubt the intimations that are impugned are issued under Section 154 of the Act. But, when the scheme itself envisages that the intimation must be issued so as to call for a reply from the deductor then it cannot be in the form of a dem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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