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2021 (11) TMI 1055 - HC - Income TaxProtective assessment u/s 143-A - Settlement of case under the Vivad se Vishwas scheme under VSV Act, 2020 - first respondent passed an order under Section 154 by concluding that the petitioner was indeed entitled for refund on sum paid as proportionate tax paid on the advance which was offered as tax by the petitioner and further interest under Section 244A - HELD THAT:- There is no dispute that the petitioner has paid the tax for the relevant assessment year viz., 2011-12 and therefore, the protective assessment for the year 2014-15 results in excess payment of tax. The petitioner cannot be taxed twice on the same income. Ultimately, the purpose of exercising power under the Act is only intended to collect correct and just tax under the provisions of the Income Tax Act, 1961 from an assessee. The Act is not intended either to collect or retain any amount which is not due from an assessee. In this connection, a reference may be made to the decision of the Hon'ble Supreme Court in Unichem Laboratories Ltd vs. Collector of Central Excise, Bombay [2002 (9) TMI 110 - SUPREME COURT] wherein the Hon'ble Supreme Court held that it is no part of duty of the department to levy and collect tax which is not due to the department. As the department has also not disputed the fact that the petitioner has settled the dispute under the Vivad se Vishwas scheme for the assessment year 2011-12 as a consequence of which the tax offered and paid by the petitioner during the assessment year 2014-15 had become excess. That apart, under Section 237 under Chapter XIX of the Income Tax Act, there is no limitation prescribed for granting refund of the amount paid in excess as tax. Therefore, I do not find any merits in the submissions made by the learned Senior Standing Counsel appearing on behalf of the respondents. Therefore, these Writ Petitions deserves to be allowed.
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