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2012 (9) TMI 400 - ORISSA HIGH COURTRejection of issuance of no deduction certificate u/s 197 - Held that:- Not issuing the short deduction/no deduction certificate u/s 197 to the petitioner on the ground that there was letter of the AO dated 25.03.2010 reporting opposite party No.1-ITO(TDS) that an amount of Rs.27,36,625/- for the assessment year 2004-05 and Rs.4,62,13,909/- for the year 2005-06 was outstanding against the assessee. Unfortunately, such a reason is not at all correct because as on 25.03.2010 no dues was outstanding against the assessee as the demand raised for the assessment years 2004-05 and 2005-06 was nullified by the Tribunal vide its order dated 11th February, 2010 i.e. much before issuance of letter dated 22nd/25.03.2010. There is inordinate delay and serious laches on the part of opposite party-authorities in dealing with the petitioner’s application for grant of no deduction certificate u/s 197 with no explanation from the Department as to why the petitioner’s application submitted on 22.06.2009 for issuance of no deduction certificate was taken up for the first time for consideration towards fag end of the financial year 2009-10 and that too on a wrong ground of non-payment of outstanding dues - As the impugned order of rejection of the petitioner’s application does not state that because of outstanding dues, short deduction/no-deduction certificate u/s 197 was not issued. This is a fresh reason stated in the counter affidavit that too an incorrect reason which contention on behalf of the Revenue is wholly untenable in law - as the certificate ought to have been given to the petitioner during the financial year 2009-10 and the Department cannot take advantage of its own inaction and lapses by taking a stand that the financial year is over, thus in the peculiar circumstances the opposite party No.1 is directed to issue necessary certificate making it effective for the financial year in question - in favour of assessee.
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