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| The Tax Publishers2023 TaxPub(DT) 4013 (Del-HC) Income Tax Act 1961
Section 154
Where TDS on compensation amount was deposited by NHAI under wrong assessment year and the same was corrected later but the rectification application filed by the assessee was not disposed of, the AO was directed to render a decision or the pending rectification application.
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Rectification - TDS reflected by deductor in wrong assessment year later rectified - Allowability -
Assessee had a land which was acquried by the National Highway Authority of India (NHAI) and was granted compensation as well as interest on the said compensation. The assessee submitted that the compensation and interest received from NHAI was not amenable to income tax. NHAI deducted tax at source, both vis-a-vis the principal amount as well as the interest. NHAI made a correction in TDS return, the revised Form 26AS reflected this position. Demand was raised against the assessee, without giving credit for the tax deducted at source on compensation. Held: The writ petition was disposed of with the direction to JAO to render a decision on the pending rectification application at the earliest, if the decision taken by the JAO was adverse to the interest of the assessee, the assessee would have liberty to take recourse to an appropriate remedy, albeit, as per law.
REFERRED :
FAVOUR : Direction issued
A.Y. : 2020-21
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