A.MUHAMMED ASHRAF V. COMMISSIONER OF INCOME TAX, KANNUR

WP(C)/15926/2005

AI Insights

The case involves A. Muhammed Ashraf, a civil engineer and contractor, who contested the decision of the Income Tax Officer regarding the credit for Tax Deducted at Source (TDS) from his contract receipts. The dispute centered on the TDS credit for the financial year 2001-02, where the Income Tax Officer only granted partial credit, citing that the remaining TDS was for the current year 2001-02. Ashraf's subsequent rectification petition was rejected, leading to a revision petition which was also denied. The High Court found merit in Ashraf's claim, emphasizing the need for the Income Tax Officer to properly consider the TDS certificates under Section 203 of the Income Tax Act.

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 755968 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-12-2011
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: P K R MENON; JOSE JOSEPH
• Assessee Lawyers: T M SREEDHARAN; E V MOLY
• Keywords: Assessment; Income Tax; Rectification petition; Revision; TDS
• Section: 154; 143(1); 264; 203

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE B.P.RAY THURSDAY, THE 8TH DECEMBER 2011 / 17TH AGRAHAYANA 1933 WP(C).No. 15926 of 2005(U) ---------------------------------- PETITIONER(S): --------------- A.MUHAMMED ASHRAF, CIVIL ENGINEER & CONTRACTOR, CHALIL P.O., AROLI, KANNUR. BY ADVS. SRI.T.M.SREEDHARAN SMT.E.V.MOLY RESPONDENTS: --------------------- 1. THE COMMISSIONER OF INCOME TAX, SAHANA AUDITORIUM, MELECHOWWA KANNUR-670 006. 2. THE INCOME TAX OFFICER, WARD-I(1), KANNUR. BY SRI.P.K.R.MENON, SENIOR ADVOCATE SRI. JOSE JOSEPH, S.C. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08/12/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JM WP(C).No. 15926 of 2005 APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF STATEMENT OF COMPUTATION OF INCOME OF THE PETITIONER FOR 2002-03 FURNISHED BY THE PETITIONER BEFORE THE ASSESSING OFFICER P2: COPY OF INTIMATION ISSUED UNDER SEC. 143(1) OF I.T. ACT BY THE ASSESSING OFFICER DT. 17.2.2003 P3: COPY OF APPLICATION DT. NIL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT U/S 143 (1) P4: COPY OF COMMUNICATION NO.ACQPA 2788C DT.25.8.2003 RECEIVED FROM THE ASSESSING OFFICER P5: COPY OF MEMORANDUM OF REVISION PETITION FILED ON 22.3.2004 BEFORE 1ST RESPONDENT. P6: COPY OF ORDER NO.C. NO.264-3/CIT/:KNR/2004-5 DT. 14.2.2005 ISSUED BY THE 1ST RESPONDENT P7: COPY OF LETTER NO. ACQPA 2788C DT. 21.3.2005 RECEIVED FROM THE 2ND RESPONDENT RESPONDENT'S EXHIBITS: NIL TRUE COPY PA TO JUDGE JM B.P. RAY, J. - - - - - - - - - - - - - - - - - W.P.(C) No.15926 of 2005 - - - - - - - - - - - - - - - - Dated this the 8th day of December, 2011. JUDGMENT The petitioner is an assessee before the Income Tax Officer, Ward -I(1), Kannur and his Permanent Account Number is ACQPA2788C. For the year ended 31.03.2002, the assessee estimated his income at Rs.5,24,130/- for the period 01.04.2000 to 31.03.2002 and claimed credit for TDS amount of Rs.1,56,655/- effected from the contract receipts. The Assessing Officer granted credit for Rs.43,674/- and declined to give credit for the balance Income Tax Deducted at Source, amounting to `1,12,981/- covered by TDS certificates stating that the amount relates to the current year 2001-02 and TDS deducted for the period 01.04.2001 to 31.03.2002 alone will be given credit. The petitioner filed a rectification petition before the 2nd respondent and the same was rejected by the Assessing Officer stating that there is no mistake. Aggrieved by the said order, the petitioner preferred a revision before the first respondent. The first respondent as per Ext.P6 order dated 14.02.2005 rejected the revision filed under Section 264 of the Income Tax Act (for short 'the Act'). It is the said order which is assailed in this petition. 2. The learned counsel for the petitioner submits that the petitioner is entitled to get full credit for the Income Tax W.P.(C) No. 15926/2005 -:2:- deducted at source from the contract payments from out of which the income is declared and accepted in the assessment and the credit has to be given to the petitioner for the amount of Tax Deducted at Source on production of Certificates for TDS furnished under Section 203 of the Act. 3. I find that the claim of the petitioner is genuine. In my considered view, the Income Tax Officer should have considered the rectification petition filed under Section 154 of the Act in its right perspective and the Income Tax Officer should have given credit to the petitioner for the amount of Tax Deducted at Source on production of the TDS certificate. 4. After hearing the learned counsel for the petitioner and the learned Standing Counsel for the Department, I set aside Exts.P4 and P6 and direct the petitioner to appear before respondent No.2 on or before 16.01.2012 and explain to him under what circumstances he could not file the TDS certificate. If the petitioner files a reasonable explanation for the delay, respondent No.2 shall pass a reasoned order and accept the same. Writ petition is disposed of with the above observation. sd/- B.P. RAY, JUDGE. rv W.P.(C) No. 15926/2005 -:3:- B.P. RAY, J. ----------------------------------------------------------- O.P.No. 13887 of 2002 W.P.(C) No. 15926/2005 -:4:- ------------------------------------------------------------- Dated this the 16th day of November, 2011. JUDGMENT "