Sunday, September 1, 2013

TDS WOES, Chaotic systemic hurdles in the CPC effective/foolproof funtioning, SO



October 15
Arun Ganesh Jogdeo .… Petitioner
Union of India & Anr. …. Respondents
Mr. Arun Ganesh Jogdeo, the Petitioner, is
present in person.
Mr. P.C. Chhotaray a/w. Ms. Sangeeta Yadav,
i/by Mr. Sureshkumar, for the Respondents.
DATE : 28 TH AUGUST, 2015 .

TDS refund harassment case
Court on its own Motion Vs Commissioner of Income Tax
WRIT PETITION (CIVIL) 2659/2012 ...

 June 16

‘Aggregated TDS Compliance’ at PAN level for all TANs associated with referenced PAN

Nov 7

S. 195 TDS to be withhold only on share of Non-resident Seller in co-owned property

 RBI : Banks to ensure Timely Issue of TDS Certificate to Customers

<> The RBI's purported 'advice' is too mild to be persuasive enough for its constituents to ‘pull up their socks’ and strictly follow it. To be precise, even otherwise, any delay beyond the prescribed time limit will clearly be a violation of the mandate of the tax rule, and by itself should invite the penal consequence as per the law. As such, if at all the RBI was sincere, what it should have done on its part, as a regulatory authority, is to issue clear-cut directions to the effect that, in case of delay the erring bank,  in addition to the penal consequence it might face, also have to face a separate action by the RBI/its Ombudsman, if and when complained of, on the ground of its having failed to protect the customer's right and interest, thereby rendering itself guilty of a breach of faith and trust; also for ‘insufficient’ /deficiency in  service, in disregard of the code of ethics/ conduct already in place. Also provide for imposing a liability to appropriately and adequately compensate the customer for the otherwise easily avoidable delay, causing inconvenience of its own kind.  For reasons  commonly known, the buck does not stop there; in other words, any such directions ought to cover not only the obligations related to taxation but also all other like areas as well. The office of the Ombudsman must be adequately strengthened,  on healthy lines, for accomplishing the desired outcome in public interest.

In the context herein, it might be appropriate to bring to focus the commonly aired and grieved about, the lately  growing indiscipline,  recalcitrant and  irresponsible behaviour /misdemeanour even among the highly paid officers of the PSBs, not to mention the supposed-to-be-overseeing topmost brasses,  in failing to provide reasonable good service, to the utter discontent of the customers. It  is high time that the RBI realises that it owes it to the banking customers  to  strive its best and bring about a change for a noticeable improvement; and  on a war footing , before it is late.


 < before
Posted: 04 Nov 2013 07:30 PM PST
It has been observed that deductors are wrongly entering the tax amount deducted on sale of property in 'interest' or 'others' or 'fee' column while making the e-payment. Accordingly, zero TDS credit will appear in Form 16B

 Common Rejection Reasons of TDS Correction Statements

Oct 3

Citicorp Finance (India) Ltd vs. ACIT (ITAT Mumbai)

Oct 1

Interest oh Interest no, says SC; but compensation, yes !

October 1st, 2013
Download: Gujarat_Flouro_Sandvik_Asia_244A_Interest.pdf

S. 244A: The department is not obliged to pay interest on interest as that is not provided in the law. Sandvik Asia 280 ITR 643 (SC) awarded compensation for inordinate delay on its facts



< 5. Since, there was an inordinate delay on the part of the Revenue in refunding the amount due to the assessee this Court had thought it fit that the assessee should be properly and adequately compensated and therefore in paragraph 51 of the judgment, the Court while compensating the assessee had directed the Revenue to pay a compensation by way of interest for two periods, namely; for the Assessment Years 1977-78, 1978-79, 1981-82, 1982-83 in a sum of Rs.40,84,906/- and interest @ 9% from 31.03.1986 to 27.03.1998 and in default, to pay the penal interest @ 15% per annum for the aforesaid period.>

<><>  The SC, to go by one’s own perceptive reaction, seems to have adopted a purely technical approach ; in that, court, acting within its judicial powers, cannot read something into a statute, such as ‘interest on interest’, which is not so provided. Nonetheless, the taxpayer’s entitlement to be suitably compensated has not been denied.
For deciding on the question of ‘suitable compensation’ in a given case, however,- that is, for quantifying the fair compensation, as one imagines, perhaps the monetary loss to the party arising as a result of delay in granting interest on overdue refund , would require to be most likely measured only in terms of ‘interest’- even if it to be termed not interest but differently.

At best, or worst, the only area of dispute left open is, whether taxpayer could successfully claim ‘compensation’ in all cases so long as refund has not been granted within the statutory time limit ; that is, not necessarily only if there is an INORDINATE DELAY as in Sandvik’s case (of course, whatever that is taken to mean or is meant to say.)
In short, as envisaged, the debate is bound to go on and on.

Incidentally, as one is expected to be aware, there is another related concept known as ‘pendente lite’ ; on which there has been any amount of litigation in the past, but with no finality as yet. For a firsthand knowledge, one may care to look up the study of case law covered in a published article @, -

  1. Jul 26, 2011 - This does not mean that in every case the arbitrator should necessarily award interest pendente lite. It is a matter within his discretion to be ...


CIT vs. Rajinder Kumar/ Naresh Kumar (Delhi High Court)

October 1st, 2013
Download: Rajinder_40_a_ia_TDS.pdf

S. 40(a)(ia) TDS: Amendment by Finance Act 2010 permitting TDS payment till due date of ROI is retrospective. Bharati Shipyard 132 ITD 53 (Mum)(SB) disapproved


CBDT Directs Immediate Issue Of Refunds Due For FY 2011-12


This is the latest in the series of circulars through which the CBDT has , going that extra mile, been good enough to once again urge the authorities down the line not to delay any further but expeditiously settle all the refund claims for the assessment year 2011-12.

The question of interest payable by the government on such refunds has been left open. However, even at the time of issuing the refunds, the AOs (or the CPC in respect of e’filed returns), it is expected, should take care of interest due and include it; as, otherwise, refundees would be subjected to a fresh spate of hassle and hardship in having to take up and pursue separately such claim . to the end of grant of interest.
In case of refunds processed by CPC,  the fear is that, unless the system has in place the interest factor in-built appropriately, refund granted may not have interest included automatically. 
In its recent land mark judgment (PIL), the Delhi HC, it is noted, has, in more than one context, made it quite clear that many of the problems could have been avoided had the AO followed, besides others, the rules book in regard to the mandates of , besides others, section 143 (1). In all such cases, it is apprehended, interest due may not be readily granted, unless the scheme of the related provisions, inter alia, section 244 A, rw section 143 (1), are kept in full view; that is, closely and harmoniously read and properly understood.
According to one’s understanding, if so done, entitlement to interest cannot be denied or disputed, particularly in those cases where the mandate of Intimation under section 143 (1) was not complied with, and the time limit laid down had expired.
It is for taxpayers / their advising professionals to make an in-depth study, and if so convinced, have the claim for interest pursued, if not granted along with refund of excess tax.

Cases where Intimation under section 143 (1) was not sent but the time limit laid down had expired call for a special mention. For, if perceptively considered and strictly construed, in such cases, the residuary provision of clause (b) of sub-section (1) of section 244A,- not clause (a), more particularly, the proviso thereto,-it could be urged, would come into play and interest to be granted accordingly.
It is on that premise, in case of refunds processed by CPC, the fear is that unless the system in place has the interest calculation in-built appropriately on the lines indicated above, refund granted may not have interest included automatically.

Sept 26

Issue Tax refund for AY 2011-12 without further delay - CBDT on TaxGuru!

Cross Refer:

(Click Here To Read More)

On Jurisdiction >

Amendment in Notification No.42/2011 Dated 19-8-2011

On AO's powers>

Jurisdiction(Of Assessing Officer) – For The Purpose Of Commodities Transaction Tax Under Chapter VII Of The Finance Act, 2013

Effect of such Notifications ! How a common taxpayer' concern; to be precise, as such notifications come to be made almost on a daily basis, who is obligated to maKE A DILIGENT NOTE AND KEEP A TRACK OF CHANGES FROM TO TIME-FOR HIS PURPOSES OF COMPLIANCE WITH THE LAW ?

Sept 15

Income Tax Department cautioned on use of Mobile applications for Filing on TaxGuru!

Sharing Quick Thoughts:

Yes, yes ! If Govt. were to proceed, the utmost Caution is a MUST.
While on the topic of ‘mobile’, or an equally fascinating but ultra -modern topic of ‘e’mail’, have you ever heard or read that interesting character from across the globe by name – David Pogue; if not better do, especially if curious to know the plus or minus of these innovations, read or listen to, at least to pass the time, – provided, of course, have the mind to do so. To get introduced go to >
Now, as for the government, better do the inevitable hard homework, with the active assistance and guidance of the most outstanding experts at large, before venturing to take even a baby step in that direction. Lest, further messing up of the even-now obtaining scenario in inter alia the realm of tax administration might prove a certainty.


3CB/3CD E-Filing Utility – Turning Into Harassment of Professionals

Not Unrelated !>

Tax payers & consultant must be more careful & serious while preferring claims

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