Wp/226864/2020 Of M/S J L Tapadiya v. Income Tax Officer And Ors

IN THE HIGH COURT OF KARNATAKAKALABURAGI BENCH DATED THIS THE 2 DAY OF DECEMBER, 2021 BEFORE. THE HON’BLE MR. JUSTICE M.I.ARUN ,WRIT PETITION NO.226864/ 2020 (RES) Between: M/s. J.L.Tapadiya, |A-2 & 3, Shivasnharan Sankiran,Khuba Plots, S.B.Temple Road, |Kalaburagi - 585 102. ... Petitione (Sri Shreenhari Kusta and Sri Manjunath Mallayya Shetty, Advocates) And: 1. Income Tax Officer, TDS Ward, Kalaburagl, Aaykar Bnavan, Sedam Road, Kalaburagi- 585 102. 2. Joint Commissioner of Income Tax (TDS), Navanagar, P.B.Road, Hubpballi - 580 025. 3. Commissioner of Income Tax (TDS), Ground Floor, Pundalik Niwas Building,Rua De Ourem, Panaji, Goa - 400 300.Rua De Ourem, Panaji, Goa - 400 300. 4. Commissioner of Income Tax - TDS (CPC), Aayakar Bnavan, Sector 3, Vaisnali, Ghaziabad, Uttar Pradesh - 201 010. .. Respondents (By Sri Ameet Kumar Deshpande, Advocate) This Writ Petition is filed under Article 226 of the.Constitution of India, praying to issue a writ of mandamus,|directing tne respondent No.1 to fortnwitn validate the|certificates issued by him in Annexures-Al, A2 and A3 orissue fresn digitized certificates for the said manualcertificates and etc. This petition coming on for Preliminary Haring in BIGroup this day, the Court made the following: ORDER Petitioner is an income tax assessee and it Is'involved in the business of financing. In the course of itsbusiness, it had advanced money to M/s. Mangal TradingCompany,M/s.Radnakrisnna|AgroIndustries M/s. Snri Manesnwari Trading Company. As against theloans, petitioner had received interest, towards wnicn it isrequired to pay income tax. The interest received by thepetitioner is subjected to Tax Deduction at Source ( TDS’for short). The rate of Tax Deduction at Source normally is10% on the amount received. However, the petitioner wasissued with the certificates under Section 197(1) of the|Income Tax Act, 1961 permitting a lower deduction of tax and at source at the rate of 3%. The said certificates are issuedby respondent No.1 and reproduced as Annexures-Al, A2and A3 to the writ petition whicn are dated 27.03.2014and are for tne assessment year 2013-14. However, whenthe deductors filed their on-line returns, the TDS of 3%made in favour of the petitioner herein and the certificatesissued in this regard were not accepted on the ground that|the TDS certificates requires to have 10 digit numbers andtne TDS certificates produced nerein as Annexures-Al, A2and A3 have four digit numbers bearing No.0263, 0264and 0265. Hence, the petitioner requested the respondentauthorities for issuance of TDS certificates having 10 digit.numbers. It Is submitted that revised new certificatenumbers were also issued as under: O414DZ708 1 0414D70897G 0414D2Z708 In spite of the same, the on-line portal of.respondents is not accepting the revised new certificate numbers also. Hence, the petitioner got issued a letter|dated 21.06.2017 to the respondent authorities requestingthem to consider the case of the petitioner and accept the.ten digits lower deduction certificates on the Traces portalat an early date, so as to enable the parties to file theirrectified returns and tne TDS demand reduced to RBs. Nil.In spite of the said request, there was no positive actionon the part of the respondents and on the contra, recoveryregarding outstanding IDS were demanded by theauthorities. It is the contention of the petitioner that TDSnas already been deducted and remitted at the approvedrate. Further, respondent No.1 had recommend the case oftne petitioner to respondent No.4 by nis letter dated14.11.2019 (Annexure-N). The confusion has happened|because the respondents have failed to provide the|necessary digital certificate under Section 197(1) of theIncome Tax Act or have not validated the certificatesissued by them in this regard. Hence, the instant writ|petition is filed with the following prayers: "a.[Issue a Writ of Mandamus or direction inthe nature of writ of mandamus or anyotherSuitable|writ|directingtheResponaent No.1 to fortnwith vatidatetheCertificatesISSUEbyhim.InAnnexures-Al, A2 and AS or issue fresndigitized certificates for the said manual|certificates in the interest ofJustice.the nature of writ of mandamus or anyotherSuitable|writ|directingtheResponaent No.1 to fortnwith vatidatetheCertificatesISSUEbyhim.InAnnexures-Al, A2 and AS or issue fresndigitized certificates for the said manual|certificates in the interest ofJustice. b.[Issue a Writ of Mandamus or direction [nthe nature of writ of mandamus or anyotherSuitable|writ|directingtheResponaent No.2 to grant administrativesanction to Respondent No.1 and notinitiate a fresn and prolonged enquiry onthe mere validation of the earlier issued.certificates in Annexure-Al, A2 and A3.”the nature of writ of mandamus or anyotherSuitable|writ|directingtheResponaent No.2 to grant administrativesanction to Respondent No.1 and notinitiate a fresn and prolonged enquiry onthe mere validation of the earlier issued.certificates in Annexure-Al, A2 and A3.” 2D.Sri Ameet Kumar Desnpande, learned counsel appearing on behalf of the respondents admits the factualposition. However, he justifies as to the demands made bythe respondents. ‘3.Heard the learned counsel for the petitioner|and tne learned counsel for the respondents. 4Admittedly, respondent No.1 nas issued the.lower deduction certificates in favour of the petitionerherein in respect of TDS. The said certificates have beenissued with numbers also. The tax also has been deductedat source and remitted to tne department. It is theresponsibility of the respondents to issue a valid TDScertificate to the petitioner. If, for any reason the.certificate issued by them cannot be uploaded on-line, it istheir responsibility to see to it that appropriate corrections|are carried out and proper TDS certificate or numbers areissued to the petitioner or its deductors, so as to enablethem to file the returns. Not doing so, shall not entitle|them to make demands in respect of amounts already.deducted. Hence, the following: 81%91 Respondent No.4 is hereby directed to issue validdigital certificate to tne petitioner, thereby validating thelower Tax Deduction at Source certificates issued under &��������2�3�4��������+���!������������������������������������������������������������������������������������������� :����������������������������������������'$���� ����� ������ ;0