2023 (1) TMI 727 - HC - Income Tax
Rectification u/s 154 - Credit for Tax Deducted at Source (TDS) as deducted in respect of the Transferor Company - scheme of arrangement of amalgamation - specified undertakings of the companies were demerged in the three petitioners and the residual Transferor Company was amalgamated with petitioner no.1 - grievance of the petitioners stems from the fact that the Income Tax Authorities have not devised any procedure for immediately providing credit for Tax Deducted at Source (TDS), which was deducted in respect of the Transferor Company - HELD THAT:- Insofar as the petitioners’ prayer for rectification of the order is concerned, this Court is informed that rectification orders under Section 154 of the Act have already been passed and the said prayer does not survive.
Petitioners states that petitioner no.1 continues to be aggrieved as the income tax portal reflects an outstanding demand of ₹1,24,97,631/-. He states that petitioner no.1 is unaware as to how the said amount has been computed.
This Court considers it apposite to dispose of the present petition by issuing the following directions:-
(a) respondent no.1 shall communicate the computation of the amount of the tax demand which is reflected as outstanding against petitioner no.1 within a period of two weeks from date; and
(b) respondent no.1 shall consider whether it is feasible to modify its software to show the credit of TDS in similar cases where schemes of amalgamation, demerger or arrangement are sanctioned by the concerned authority.