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2017 (4) TMI 359 - HC - Income TaxDenial of credit for advance tax deposited and tax deducted at source (TDS) - Held that:- The only bar discernable under the scheme in question is evident from Section 189 is that no person declaring under the Act shall not be entitled to "claim any set off or relief in any appeal, reference or other proceeding in relation to any such assessment or reassessment." Also, under that provision the person so declaring shall not be entitled to " to re-open any assessment or reassessment made under the Income-tax Act or the Wealth-tax Act, 1957 (27 of 1957)". Therefore, the court is of the opinion that there is no bar for an assessee or declarant to claim credit of advance tax amounts paid previously relative to the assessment years or periods for which it seeks benefits under the scheme. In the decision in Shelly [2003 (5) TMI 4 - SUPREME Court] is decisive that advance tax is a mode of tax recovery, which the assessee is bound to pay under the scheme of the Income Tax Act and also the clarification by the Revenue, that credit for TDS paid, can be enjoyed for availing the benefit (under the scheme in question) precludes any meaningful argument by it that advance tax payments relative for the assessment years covered by the declaration cannot be taken into consideration as payments under and for purposes of availing the benefits of the scheme. Thus the petition has to succeed. Accordingly a direction is issued to the respondents to process the petitioner’s application under the IDS, 2016, and give adjustment or credit to the amounts paid as advance tax and TDS to its account, under the Income Tax Act, and accept the balance amounts (after also giving credit to the amounts paid during the interregnum, pursuant to the interim order of this court dated 29th November, 2016). The respondents shall ensure that the petitioner’s payments and declarations are processed in accordance with the IDS, 2016.
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