Ms Indian Explosive Private Limited Thr Its Authorized Signatory Cum Accounts Officer Devesh Awasthi V. The Union Of India Through The Commissioner Of Income Tax Tds And Ors

WPC/1034/2016

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The case involves M/s Indian Explosive Private Limited challenging an order passed by the Income Tax Officer, TDS Ward, Bokaro, which directed the petitioner's banker to pay a sum of Rs. 1,69,73,909 under section 226(3) of the Income Tax Act, 1961. The petitioner argued that the notice was illegal and the amount exaggerated, citing a reduction in the outstanding amount due to previous payments and unconsumed challans. The respondents acknowledged the errors but suggested that the petitioner should bear the consequences of the initial mistakes. The court decided to quash the original notice and order, remanding the case for a fresh assessment considering the payments already made and the unconsumed challans.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 674458 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 30-08-2016
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DEEPAK ROSHAN
• Assessee Lawyers: SUMEET GADODIA
• Keywords: Income Tax; PAN error; Remand; TDS; Challan mismatch
• Section: 226(3)

Judgement Text

"IN THE HIGH COURT OF JHARKHAND AT RANCHI W .P .(T) No. 1034 of 2016 with I.A. Nos. 1098 & 1798 of 2016 M/s Indian Explosive Private Limited, a Company registered under the Company Act, 1956 having its unit at Gomia, P .O. Indian Explosive, P .,S. Gomia, District Bokaro-829112 through its authorized signatory cum Accounts Officer, Devesh Awasthi S/o Shri Prakash Narain Awasthi, R/o B-18, IEL Colony, P .O. Indian Explosive, P .S.Gomia, District Bokaro-829112 …..... …...... Petitioner Vs. 1. The Union of India through the Commissioner of Income Tax (TDS), having its office at Central Revenue Building, 2nd Floor, Birchand Patel Marg, P .O. G.P .O., P .S. Kotwali, District Patna- 800001. 2. The Deputy Commissioner, Income Tax (TDS Circle) having its office at Revenue Building, 5 A Main Road, Ranchi, PO GPO, P .s. Chutia, District Ranchi 3. The Income Tax Officer, TDS Ward, Bokaro having its office at Qr. No. 749, Sector-1/C, Bokaro, P .O. And P .S. Bokaro Steel City, District Bokaro (Jharkhand) ........... …...... Respondents CORAM: HON'BLE MR. JUSTICE D.N.PATEL : HON'BLE MR. JUSTICE RATNAKER BHENGRA ---------- For the petitioner : Mr.Sumeet Gadodia,Adv. For the respondents : Mr. Deepak Roshan,Adv. ---------- 08/Dated: 30 th August, 2016 Per D.N.Patel, J 1. This writ petition has been preferred by this petitioner challenging the order passed by the Income Tax Officer, TDS Ward, Bokaro U/s 226 (3) of the Income Tax Act, 1961, whereby the petitioner's banker has been directed to pay a sum of Rs. 1,69,73,909/-. 2. Counsel for the petitioner submitted that the aforesaid notice is absolutely illegal and the amount as shown therein is over exaggerated. It is further submitted by counsel for the petitioner that under the order at Annexure-3 dated 9.2.2016, an amount of Rs. 26,01,120/- has been realized by the respondents as on 25th May, 2016. It is further submitted by counsel for the -2- petitioner that now the outstanding amount shown at Rs.10,86,690/- as on 16th July, 2016 is further reduced to Rs.3,73,940/- as on 18th August, 2016. Thus, the amount of Rs.1,69,73, 909/- as mentioned in Annexure-3, is reduced to Rs.3,73,940/- as on 18th August, 2016. It is further submitted by counsel for the petitioner that this situation has arisen because of mis-match of challan numbers and also mistake in PAN number. There are unconsumed challans worth Rs. 31,58,812/-. Thus, this TDS amount is already deposited, but, the said amount has not been deducted from the outstanding amount. Thus, it is submitted by counsel for the petitioner that let, the matter be remanded to the Income Tax Officer, TDS Ward Bokaro for passing afresh order taking into consideration the liability of this petitioner and the amount already realized and also keeping in mind the unconsumed challan(s) worth Rs.31,58,812/- which can be adjusted against liability of this petitioner. 3. Counsel for the respondents submitted that all these errors have been committed by this petitioner alone due to mis-match of challans and mistake in PAN number. If the petitioner has committed mischief or mistake, he has to suffer for it. This petitioner is slowly rectifying the error(s) and hence, the amount is slowly being reduced. Nonetheless, if the matter is remanded, appropriate order will be passed looking to the amount realized and looking to unconsumed challan(s) and also looking to the demand of the respondent-Income Tax Department. 4. Having heard counsel for both the parties and looking to the facts and circumstances of the case that because of error in mis-match of challan(s) and error in PAN number, the liability, imposed by order at Annexure-3, Rs. 1,69,73,909/- is now reduced to Rs. 3,73,940/- which is approximately 2.5 % of the total demand. The amount already realized by the respondents as on 25.5.2016 is at Rs.26,01,120/- as well as there are also unconsumed challan(s)/unconsumed amount of Rs. 31,58,812/- which is to be adjusted against the liability of this petitioner. -3- 5. Since, no final order has been passed by the Income Tax Officer, TDS Ward, Bokaro, we hereby quash and set-aside the notice dated 9.2.2016 (Annexure-3) issued u/s 226 (3) of the Income Tax Act, 1961, and modified order dated 10.6.2016 which is at Annexure-A to the supplementary counter-affidavit filed by the respondents, is also hereby quashed and set-aside. 6. Matter is remanded to the Income Tax Officer, TDS Ward, Bokaro who shall pass an order keeping in mind the aforesaid aspects of the matter and that sizable amount has already been realized and there are unconsumed challan(s)/unconsumed amount which can be adjusted towards liability of this petitioner. 7. This writ petition is allowed with aforesaid directions. 8. In view of final order passed in the writ petition I.A. Nos. 1098 of 2016 and 1798 of 2016 are disposed of. (D.N.Patel, J.) Nibha/Sanjay (Ratnaker Bhengra, J.) "