Wp(C)/16188/2020 Of Shri K.c. Unnikrishnan v. The Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH WEDNESDAY, THE 16TH DAY OF SEPTEMBER 2020 / 25TH BHADRA, 1942WP(C).No.16188 OF 2020(W) PETITIONER: SHRI K.C. UNNIKRISHNAN,PAN ,KOTTALATHODY HOUSE, ALATHUR,PALAKKAD-678 722. BY ADV. SMT.DIVYA RAVINDRAN RESPONDENTS: R1-R2 BY ADV. SRI.P.K.RAVINDRANATHA MENON (SR.)R1-R2 BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON16.09.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT Dated this the 16[th] day of September, 2020 The petitioner seeks to quash Ext.P5 and direct thefirst respondent to rectify the TDS mismatch after taking into account Ext.P2 Return and Ext.P3 Form 16A TDSCertificate and to issue refund along with interest for thedelayed period from the date of deduction of TDS to thedate of actual granting of refund in accordance with theclaim by the petitioner. 2.The petitioner filed return of income tax forassessment year 2007-08 in Form No.3 on 08.02.2008. Asper Ext.P3, an amount of `1,15,034/- was deducted by theLife Insurance Corporation of India from the payment madeto the petitioner towards TDS, while tax payable by thepetitioner for the assessment year 2007-08 was only`64,025/-. The petitioner was awaiting refund. 3.However, by Ext.P5, the respondent required the petitioner to pay `99,030/- towards tax and interest dues. The petitioner, filed Ext.P6 application for rectificationpointing out that the TDS effected as per Ext.P3 is alreadywith the respondent and therefore Ext.P5 is unsustainable. 4.The learned standing counsel appearing for therespondents filed a statement in the writ petition andopposed the prayers of the petitioner. According to therespondents, the petitioner failed to furnish the original TDSCertificate to the Department. In the absence of originalTDS Certificate, the then Assessing Officer has not givencredit for the TDS amount of `1,15,034/- at the time ofprocessing the Return under Section 143(1). Further onverification, it is found that the said TDS amount is notreflected in the TDS Database of the Department,contended the Standing Counsel. 5.The learned Standing Counsel appearing for therespondents further submitted that in the absence of TDScredit in the TDS Database of the Department and also due to the non availability of the original TDS Certificate (Form No. 16A), the first respondent will make necessary enquiriesfrom the deductor regarding the genuineness of the TDScredit and as to whether the tax deducted at source hasbeen credited to the Central Government account. 6.Heard. 7.It is seen that TDS has been deducted as perExt.P3 Certificate issued by the Life Insurance Corporationof India. According to the petitioner, the petitioner producedoriginal of Ext.P3 along with Ext.P1 ITR. The case of therespondents is that this remittance is of the year 2007-08and its entry is not reflected in Database. When thepetitioner asserts that original of Ext.P3 has already beensubmitted before the Income Tax Authorities, the petitionercannot be called upon to produce the original again. 8.In the circumstances, the writ petition is disposedof directing the respondents to consider Ext.P6 rectificationapplication with reference to Ext.P3. The first respondent will be at liberty to get necessary information from the LifeInsurance Corporation to decide the issue. While decidingthe issue the first respondent shall also consider whethernecessary reduction is to be given towards interest dues, tothe petitioner. The writ petition is disposed of as above. Sd/- N. NAGARESH JUDGE ncd WP(C)No.16188/2020 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1THE TRUE COPY OF INCOME TAX RETURN IN FORMNO.3 DATED 08.02.2008 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR AY 2007-08.NO.3 DATED 08.02.2008 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR AY 2007-08. will be at liberty to get necessary information from the LifeInsurance Corporation to decide the issue. While decidingthe issue the first respondent shall also consider whethernecessary reduction is to be given towards interest dues, tothe petitioner. The writ petition is disposed of as above. Sd/- N. NAGARESH JUDGE ncd WP(C)No.16188/2020 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1THE TRUE COPY OF INCOME TAX RETURN IN FORMNO.3 DATED 08.02.2008 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR AY 2007-08.NO.3 DATED 08.02.2008 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR AY 2007-08. EXHIBIT P2THE TRUE COPY OF INCOME TAX RETURN IN FORMNO.4 DATED 3.11.2008 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR AY 2007-08.NO.4 DATED 3.11.2008 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR AY 2007-08. EXHIBIT P3TRUE COPY OF THE FORM 16A TDS CERTIFICATE OBTAINED FROM THE BRANCH MANAGER LIC OF INDIA ALATHUR BRANCH DATED 12.4.2009.OBTAINED FROM THE BRANCH MANAGER LIC OF INDIA ALATHUR BRANCH DATED 12.4.2009. EXHIBIT P4TRUE COPY OF THE LETTER DATED 17.7.2009 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT.FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P5TRUE COPY OF THE INTIMATION DATED 30.3.2010 RECEIVED UNDER SECTION 143(1) OFTHE ACT FROM THE 1ST RESPONDENT.30.3.2010 RECEIVED UNDER SECTION 143(1) OFTHE ACT FROM THE 1ST RESPONDENT. EXHIBIT P6TRUE COPY OF THE RECTIFICATION APPLICATIONDATED 23.4.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT.DATED 23.4.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P7TRUE COPY OF THE INTIMATION DATED 4.3.2016RECEIVED FROM THE 1ST RESPONDENT UNDER SECTION 245 OF THE ACT FOR AY 2015-16.RECEIVED FROM THE 1ST RESPONDENT UNDER SECTION 245 OF THE ACT FOR AY 2015-16. EXHIBIT P8TRUE COPY OF THE E-FILING RESPONSE DATED 5.5.2016 SENT TO THE 1ST RESPONDENT FOR AY2015-16.5.5.2016 SENT TO THE 1ST RESPONDENT FOR AY2015-16. EXHIBIT P9TRUE COPY OF THE E-FILING REFUND STATUS FOR A7 2015-16 DATED 21.12.2016.FOR A7 2015-16 DATED 21.12.2016. EXHIBIT P10TRUE COPY OF THE LETTER DATED 26.8.2019 SENT BY THE PETITIONER TO THE 1ST RESPONDENT FOR AY 2015-16.SENT BY THE PETITIONER TO THE 1ST RESPONDENT FOR AY 2015-16.