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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 29TH DAY OF FEBRUARY, 2016
BEFORE
THE HON’BLE MR. JUSTICE A S BOPANNA
WRIT PETITION No.46390/2015 (GM-RES)
BETWEEN:
M/S SHRAVANEE PROPERTIES PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS CORPORATE OFFICE AT AT NO.142 & 143, 1ST FLOOR, G.R.PLAZA, DR.D.V.G.ROAD, BASAVANAGUDI, BANGALORE, KARNATAKA, INDIA-560004. (REP. BY ITS DIRECTOR MR.S.HANUMESH) ... PETITIONER
(BY SRI. AJAY J N, ADV.)
AND:
THE REGISTRAR CITY CIVIL COURT, BANGALORE, KEMPE GOWDA ROAD, GANDHI NAGAR, BANGALORE-560009.
KARNATAKA BANK LIMITED CITY CIVIL COURT COMPLEX, KG ROAD, BANGALORE-56009. REP. BY ITS BANK MANAGER.
THE COMMISSIONER OF INCOME TAX (TDS) ROOM NO.59, H.M.T.BHAWAN, 4TH FLOOR, BELLARY ROAD, GANGANAGAR, BANGALORE-560032. ... RESPONDENTS
(BY SRI. R B SATHYANARAYANA SINGH, AGA. FOR R1 SRI K P KUMAR, SR.COUNSEL FOR SRI SANDEEP HULIGOL, ADV. FOR R2 SRI K V ARAVIND, ADV. FOR R3)
THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, WITH A PRAYER TO DIRECT THE R-1 AND R-2 TO ISSUE NECESSARY INTIMATION TO THE R-3 TO CREDIT THE AMOUNT OF RS.29,64,773/- [RUPEES TWENTY NINE LAKHS SIXTY FOUR THOUSAND SEVEN HUNDRED AND SEVENTY THREE ONLY] DEDUCTED BY THE R-2 AS TDS TO THE PERMANENT ACCOUNT NO. [PAN AAJCS2375N] OF THE PETITIONER AND ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R
The petitioner is before this Court seeking appropriate direction to the second respondent to issue necessary intimation to the third respondent to credit the amount of Rs.29,64,773/- deducted by the second respondent as Tax Deducted at Source (‘TDS’ for short) to the PAN Card No. AAJCS2375N. In that light, the petitioner is also seeking a direction to the third respondent to treat the said amount towards the PAN No. AAJCS2375N.
The petitioner had been awarded the compensation in respect of the acquisition proceedings in
LAC No.58/2014 dated 19.06.2014. In that view, the Acquiring Authority had deposited the amount before the City Civil Court. The Registrar of the City Civil Court in turn had deposited the said amount in the second respondent-bank. Since the said amount was lying in the second respondent-bank and the same earned interest, the second respondent was required to deduct the tax on the interest at source and furnish the details to the third respondent. In view of the compensation granted to the benefit of the petitioner having been deposited, the interest amount on the said compensation rightfully belongs to the petitioner. Therefore, the tax liability on the interest was also that of the petitioner and when the deduction at source was made by the second respondent, the petitioner was entitled to issue of Form No.16 since the TDS was to be accounted to the PAN No.AAJCS2375N which belongs to the petitioner. However, in the absence of the details relating to the
PAN number of the petitioner and since the amount in fact had been deposited by the first respondent with the second respondent-bank, though the tax had been deducted by the second respondent, the benefit of the same was not granted to the petitioner by indicating the PAN number of the petitioner while filing the returns. It is in that view, the petitioner being aggrieved is before this Court.
The very nature of the transaction as indicated above would disclose all that is required is to rectify the transaction at this stage and grant benefit to the petitioner. In that view, the second respondent shall take note of the PAN number of the petitioner as indicated in the instant petition, file a statement with the third respondent and grant the benefit of TDS for the interest earned to the benefit of the petitioner by indicating the PAN number.
The third respondent is directed to accept the statement to be filed by the second respondent-bank and grant the benefit to the petitioner in respect of the TDS with regard to interest earned on the compensation for the relevant accounting year for which it was deposited.
In this regard, the petitioner is granted the liberty of approaching the third respondent in respect of the same whereupon the third respondent shall keep in view the position of law and consider the said amount which has been paid as provided either as the tax having already been paid for the earlier years or provide such adjustment as per law.
In terms of the above, the petition stands disposed of.
Sd/-
JUDGE
hrp/bms