Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 334 - JHARKHAND HIGH COURTMonies being realised from the Petitioner in the guise of TCS - Petitioner seeking refund of forcefully realised and interest at the rate of 18% per annum - petitioner contended that the benefit of Section 206C(1A) ought to have been granted to the Petitioner once Form 27C has been submitted by the Petitioner and there exists no material to conclude that the declaration forming part of such Form is false - HELD THAT:- The root cause of the present Lis lies in the illegality committed by the Revenue in compelling Respondent No. 1 and 2 (CCL) in effecting TCS qua the transactions of purchase of coal which according to the Petitioner was genuinely used in generation of power. Such TCS was affected by Respondent No. 1 and 2 (CCL) even though appropriate Form 27C was issued by the Petitioner with a verification that the goods so purchased would be used for the purposes of generation of power. The above stand of the Respondents No. 3 to 5 (Revenue) also lead to Respondent No. 1 and 2 (CCL) being declared as an Assessee-in-Default for not having collected TCS in respect of transactions made with various parties where one such party was the Petitioner. That allegation has been quashed by the Ld. ITAT vide its order dated 23.01.2023. While in its Petition the Petitioner had prayed that the illegal sums collected as TCS should be forthwith refunded along with interest recovered in respect thereto as also statutory interest, this Court deemed it appropriate that instead of a refund, issuance of a TCS certificate by Respondents No.1 and 2 (CCL) for the period 2012-2013 to 2017-2018 may in the alternative be an effective relief to the Petitioner. Accordingly, this Court directed Respondents No. 3 to 5 (Revenue) to provide a tangible solution for the issuance of TCS certificates for the period under dispute. In compliance with this Court’s directions, Respondents No. 3 to 5 (Revenue) provided the procedure for the issuance of TCS certificates by Respondents No. 1 and 2 (CCL) to the Petitioner. In response, however, the Petitioner highlighted that the TCS certificates which would be issued by Respondents No. 1 and 2 (CCL) would not be capable of being utilized by the Petitioner because of the lapse in time in issuance thereof. Nonetheless, pursuant to the procedure provided by Respondents No. 3 to 5 (Revenue), Respondents No. 1 and 2 (CCL) issued TCS certificates to the Petitioner in February 2023 pertaining to the period FY 2012-2013 to the First Quarter of FY 2017-2018. Post the issuance of TCS certificates to the Petitioner, vide its order dated 06.04.2023, this Court recorded that as per the Petitioner, three issues remained unresolved, which were: a. The Petitioner was unable to take benefit of the TCS certificates; b. The Petitioner was entitled to statutory interest under Section 244A of the Act. c. The Petitioner deserved to be restituted of the interest component of TCS amounting to Rs. 1,60,75,329.93/-. It is in respect to the resolution to the three issues referred to herein above; Option No. 2 has been suggested by Respondents No. 3 and 4 (Revenue) in their Supplementary Affidavit and concurred by Petitioner as also Respondents No. 1 to 2 (CCL). As such therefore, Option No. 2 proposed by the Respondents No. 3 to 5 (Revenue) was suggested by them in compliance with a direction of this Court and Respondents No. 3 to 5 (Revenue) is therefore bound by the same. Having heard learned counsel for the parties and after taking cognizance of the statements made in the Supplementary Affidavit dated 13.06.2023 filed by the Respondents No. 3 to 5 (Revenue); we hereby direct that the entire sums of money collected as TCS from the Petitioner along with interest thereon, be refunded by Respondents 3 to 5 (Revenue) to Respondents No. 1 and 2 (CCL) who should thereafter forthwith refund the same to the Petitioner in a time-bound manner.
|