Application for lower TDS certificate should be disposed off expeditiously

Expeditious and fast track disposals of section 197 applications are mandatory and required for payment of refunds of TDS

 

Section 197 of the Income-tax Act, 1961 - Deduction of tax at source - Certificate for deduction at lower rate [Refunds] - Whether an assessee is entitled to file an application for certificate of deduction at lower rate even before commencement of financial year for deduction of tax has to be made in financial year itself by payer; expeditious and fast track disposals are mandatory and required for payment of refunds of TDS - Held, yes [Para 1] [In favour of assessee]

 [2013] 36 taxmann.com 417 (Delhi)

HIGH COURT OF DELHI

Indus Towers Ltd.

v.

Assistant Commissioner of Income-tax (TDS)

SANJIV KHANNA AND SANJEEV SACHDEVA, JJ.

W.P. (C) NO. 4518 OF 2013

JULY 19, 2013

Venkataraman, Gajendra Maheshwari and Rajat Bose for the Appellant. Karan Khanna and Ms. Asmita Kumar for the Respondent.

JUDGMENT

1. After some hearing, it is agreed that the petitioner herein will file a revision petition before the Commissioner of Income Tax (TDS), Delhi within seven days and the said authority will dispose of the said revision petition expeditiously preferably within a period of thirty days of filing of the revision petition. We have made the said observation in view of the fact that the learned counsel for the petitioner has submitted that year after year the petitioner has become entitled to substantial refunds on account of excess TDS deducted and the petitioner had to file three writ petitions for payment of refunds. Another allegation made by the petitioner is that the respondents did not entertain their application under Section 197, till 1st April, 2013. Prima facie,this should not happen and cannot be justified as an assessee is entitled to file an application even before the commencement of the financial year for deduction of tax has to be made in the financial year itself by the payer. Expeditious and fast track disposals are mandatory and required. With the aforesaid observations, the writ petition is disposed of with liberty to the petitioner to approach the Court in case of delay or an adverse order.

Get Sudycafe's Updates by SMS in your mobile by Following below two Steps: 

1. Download our SmartPhone Application & 

2. Send a SMS, Type: JOIN CASTUDYCAFE & send to 9219592195