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TMI Blog2024 (10) TMI 1488X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the application, but it was eventually filed on 27 April 2022 HELD THAT:- The petitioner would be correct in his contention that in view of the subsequent developments and in pursuance of the orders passed by this Court, a rectification order was passed. Also the demand raised under the rectification order, which was for payment of tax of Rs. 303/- was complied by the petitioner. In this view of the matter, the penalty proceedings are also rendered inconsequential as the very foundation of such penalty proceedings stood extinguished in view of rectification order being passed. Admittedly, the demand and penalty proceedings under the Assessment Order dated 30 March 2022 would lose their sanctity, in view of the rectification order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be pleased to permit the Petitioner to make an application under section 270AA of the Income-tax Act, 1961 for Assessment Year 2017-18 within such time as this Hon'ble Court deems fit after the disposal of the application dated 11th April 2022 of the Petitioner under section 154 of the Act, by passing the following orders and directions: i. issue a Writ of Mandamus or a Writ in the nature of Mandamus or any other appropriate writ, order or direction under Article 226 of the Constitution of India directing the Respondents to dispose of the application dated 11th April 2022 filed by the Petitioner under section 154 of the Act within such time as this Hon'ble Court deems fit and further be pleased to direct the Respondents to raise a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry from his employer on which a sum of Rs. 26,43,323/- was deducted as tax at source. Form No. 16 was issued by the employer accordingly showing TDS of Rs. 26,43,323/- also such amount was reflected in the Form No. 26AS, copies of which are placed on record. 5. On 19 March 2021, notice under Section 148 of the Income Tax Act, 1961 (for short the Act ) was issued to the petitioner for the assessment year in question. Responding to such notice on 23 April 2021, the petitioner filed return of income declaring total income at Rs. 85,77,740/-. Obviously, the petitioner sought a credit of TDS amount of Rs. 26,43,323/- as deducted by the employer at source part of form 16 and also in form 26AS. 6. Between the period 24 April 2021 to 30 March 2022, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification application dated 11 April 2022 with respondent No. 1 i.e. on 27 April 2022. 8. Also, the petitioner filed its reply to the penalty notice on 9 May 2022 inter alia contending that the Assessment Order had a mistake apparent on the face record as the TDS amount has not been accounted for and further actions which were initiated were in fact totally unwarranted. It appears that on one hand, the rectification application was not being disposed of and on the other hand, respondent No. 1 proceeded with the penalty proceedings, inasmuch as on 10 August 2022, a notice was issued to the petitioner so as to proceed with the penalty proceedings. A reply to this notice was filed by the petitioner on 18 August 2022 inter alia pointing out th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be pending. 13. It is on the above conspectus, the proceedings are before us. The pleadings on the petitioner are complete. Reply affidavit is placed on record. Rejoinder affidavit is also filed. 14. Learned counsel for the petitioner would submit that the case of any under reporting or misreporting as initially being asserted on behalf of the department has certainly proved to be incorrect, in view of the rectification order dated 3 January 2023 and the compliance of the rectification order namely a tax demand of Rs. 303/- being deposited by the petitioner. 15. Ms. Nagaraj, learned counsel for the revenue would also not dispute the factual matrix and would also contend that the rectification order in fact would bring about a quietus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossibly arise under the Assessment Order dated 30 March 2022, which was apparently held to be not correct, was accordingly interfered in the rectification proceedings. Thus, the assessment order as originally passed cannot continue to prejudice the petitioner for any actions to be taken thereunder. In the aforesaid circumstances, we are inclined to allow the petition in terms of following order: ORDER i. The order dated 27 September 2022 passed by respondent No. 1 under Section 270A is quashed and set aside. ii. As the entire basis of the Assessment Order dated 30 March 2022 stands extinguished, no proceedings under the said order ought to be taken against the petitioner. iii. The petitioner s application under Section 270AA also ought not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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