The Delhi High Court directed the Central Board of Direct Taxes (CBDT) to decide on three alternatives for an Income tax refund after considering the revised return filed by the assessee.
The principal grievance of the petitioner, Fada Trading Private Limited is that Rs. 40,00,000/- deposited by it (albeit, in two tranches) towards tax was inadvertently captured against under Assessment Year (AY) 2019-20 instead of AY 2020-21.
The petitioner conceded that a mistake was made in filling up the two challans which accompanied the deposit of the self-assessment tax. The two tranches in which the self-assessment tax was deposited were Rs.10,00,000/- and Rs. 30,00,000/-.
The petitioner stated that there was no requirement to deposit the self-assessment tax in AY 2019-20 since it had suffered losses in the relevant period. The Assessing Officer (AO) corrected the error in the records of the respondents/revenue and had the deposit made toward self-assessment reflected against AY 2020-21. The petitioner moved the Principal Chief Commissioner of Income Tax to condone the delay in filing the revised return so that it could claim a refund.
Mr. Ruchesh Sinha, who appeared on behalf of the petitioner, submitted that the respondents/revenue could deal with the petitioner’s requests with a refund of Rs. 40,00,000/- to the petitioner, to condone the delay and permit the petitioner to file a revised return and allow the petitioner to adjust Rs. 40,00,000/- deposited by the petitioner for against another AY.
Mr Sharma stated that the three alternatives referred to above could be examined by the CBDT and appropriate orders would thereafter be passed.
A division bench of Justice Rajiv Shakdher and Justice Girish Kathpalia disposed of the writ petition with a direction to the CBDT to examine the three alternatives placed before us by the petitioner. The CBDT will, thereafter, decide as to what would be the best way forward. The CBDT is requested to pass a reasoned order.
“Since the issue has been hanging fire for nearly one year, the CBDT is requested to decide this matter as expeditiously as possible though not later than ten (10) weeks from the date of receipt of a copy of the order.”, the bench concluded.
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