Case Note & Summary
The dispute arose from the petitioner's income tax assessment for the Assessment Year 2006-07. The petitioner, a Judicial Officer, filed a return showing a total income of Rs.1,79,664 and claimed a refund of Rs.16,615. However, the Assessing Officer issued an intimation reflecting a lower income of Rs.1,42,540 and did not credit the tax deducted at source of Rs.17,500, leading to a demand of Rs.4,339. The petitioner sought rectification, asserting that the income was incorrectly computed and the tax deducted at source was not considered. The Assessing Officer later issued a revised intimation, again not crediting the tax deducted at source, resulting in a total demand of Rs.8,219. The petitioner, through a query under the Right to Information Act, confirmed that the tax had indeed been deducted. The court noted that the law prohibits recovery of tax from the person whose income was subjected to tax deduction at source. The court found the revised intimation to be invalid due to lack of verification and directed the Assessing Officer to verify the tax deduction and grant appropriate credit. The petition was disposed of accordingly, with appreciation for the assistance of the amicus curiae.
Headnote
A) Income Tax - Tax Deducted at Source - Recovery from Assessee - Income Tax Act, 1961, Section 154 - The court held that the revised intimation issued by the Income Tax Officer was without verification of facts regarding tax deducted at source from the petitioner's salary, thus setting it aside and directing further verification and credit for tax if applicable. (Paras 3-5).
Issue of Consideration
Whether the revised intimation issued by the Income Tax Officer was valid given the lack of verification of tax deducted at source.
Final Decision
The court set aside the revised intimation issued on 24 January 2007, directing the Assessing Officer to verify the tax deducted at source and grant appropriate credit if applicable.
Law Points
- Income Tax
- Tax Deducted at Source
- Rectification of Assessment
- Right to Information Act
