SHARP ENGINEERS THROUGH PARTNER BABUBHAI J PATEL vs. INCOME TAX OFFICER TDS-3

By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs: “a. A   writ   of   certiorari   or   any   other   writ, order   or   direction   in   the   nature   of   Certiorari quashing   the   impugned   recovery   notices   dated 04.06.2018 and 24.12.2018 for the assessment year 2008­09   and   directing   the   respondent   to   delete demand of Rs.2,34,020/­ raised on account of short payment of TDS; b.   Pass   any   other   order(s)   as   this   Hon'ble   May deem fit and more appropriate in order to grant interim relief to the petitioner. “

We have heard Mr. Hardik V. Vora, the learned counsel appearing for the writ applicant and Mr. M.M.Bhatt,   the   learned   Senior  Counsel   assisted by Mrs. Mauna M. Bhatt, the learned Sr. Standing Counsel appearing for the Revenue.

The   controversy   involved   in   the   present litigation   is   in   a   narrow   compass.   The   writ applicant being a Partnership Firm had deducted C/SCA/4771/2019 ORDER the   TDS   under   the   various   provisions   of   the Income   Tax   Act,   1961   (for   short   “The   Act, 1961”).   The   assessee   had   also   filed   the   TDS return   in   physical   form   for   the   F.Y.   2007­08 relevant   to  the  A.Y.   2008­09   after   paying   due taxes on 09.05.2008. 4. The   respondent   passed   an   order   under   Section 201(1)/201(1A)   of   the   Act,   1961   raising   the demand of Rs.2,08,670/­ being the short payment towards the TDS.

Against such order, the writ applicant filed an appeal   before   the   Commissioner   of   Income   Tax (Appeals)­8. The   Commissioner   of   Income   Tax (Appeals)­8   directed   the   Assessing   Officer   to grant credit of the TDS deducted and deposited to  the   credit   of  the   Central   Government  after due verification.

The   Assessing   Officer   pursuant   to   the   order passed   by   the   Commissioner   of   Income   Tax (Appeals) addressed a letter dated 21.04.2015 to the writ applicant requesting the writ applicant to produce certain documents for the purpose of giving effect to the CIT Appeals order.

It is the case of the writ applicant that he has furnished all the necessary information, but the recovery notices are still being issued by the Assessing   Officer   for   the   recovery   of   short payment. C/SCA/4771/2019 ORDER

In   such   circumstances   referred   to   above,   the writ   applicant   is  here   before   this   Court   with the present writ application.

Mr. Bhatt, the learned Sr. Counsel appearing for the Revenue invited the attention of this Court to   the   letter   addressed   by   the   Income   Tax Officer,   TDS­3,  Ahmedabad,   dated   20.03.2019  to the Commissioner of Income Tax (CPC), Ghaziabad, Uttar   Pradesh,   making   a  request  to   reduce   the demand   on  the   TRACES.  According  to   Mr.  Bhatt, the   matter   is   pending   at   the   end   of   the Commissioner   of   Income   Tax   (CPC),   Ghaziabad, Uttar   Pradesh.   The   letter   is   at   page   No.37 (Annexure­R­1) to the writ application.

In the aforesaid context, Mr. Bhatt also invited the   attention   of   this   Court   to   the   averments made   in   Paragraph   No.3.5   of   the   affidavit­in­ reply filed on behalf of the Revenue. Paragraph No.3.5 of the Affidavit­in­Reply reads thus: “3.5 With reference to para 4.1 to 5.1, it   is   submitted   that   this   is   general submission   and   prayer   of   the   petitioner and   therefore,   the   same   requires   to   be looked into in the context of the above

Thus, it appears from the above that, although the stance of the respondent herein is that the outstanding demand has been reduced to NIL, yet the   necessary   correction/deletion   of   the outstanding   demand   shown   online   is   under   the process  at   the  level   of  CPC,   Ghaziabad   (U.P). The Commissioner of Income Tax (CPC), Ghaziaabad (U.P)   is   not   before   us   as   one   of   the   party respondents. However, as the controversy is in narrow   compass,   we   dispose   of   this   writ application with a request to the Commissioner of Income Tax (CPC), Ghaziabad (U.P) to effect the   necessary   correction/deletion   of   the outstanding demand shown online within a period of  four weeks  from the date of receipt of this order. Registry shall forward one copy of this order to the Commissioner of Income Tax (CPC), Aaykar   Bhavan,   Sector­3,   Vaishali,   Ghaziyabad, Uttar Pradesh.

With the above, present writ application stands disposed of. (J. B. PARDIWALA, J) (ILESH J. VORA,J) SUCHIT