TOSHIBA TECHNICAL SERVICES INTERNATIONAL CORPORATION Vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2

JUDGEMENT

(1.) Since all the three petitions have been filed by the same petitioner Toshiba Technical Services International Corporation, involving similar factual and legal issues, they were heard together and are being disposed of by this common order. For the sake of convenience, the facts of Special Civil Application No.8523 of 2021 are taken into consideration.

(2.) The petitioner, a Company incorporated in Japan, has filed the present petition invoking the extraordinary jurisdiction of this Court under Article 226 of the Constitution, seeking the following prayers contained in paragraph No.7 of the petition:-

(3.) The short facts relevant for the purpose of deciding the petition, as emanating from the petition itself are that the petitioner is engaged in the execution of worldwide social-infrastructure projects and is engaged in providing supervisory services in relation to erection, installation, commissioning, testing of various types of equipment in a power plant and maintenance of the power plant. The petitioner had filed the original return of income for the A.Y. 2016-17 on 30.11.2016, disclosing the income at Rs.15,29,60,070/-, and claiming TDS at Rs.6,18,83,907/- and had also claimed refund of tax of Rs.52,97,200/-. The petitioner thereafter had filed revised return on 28.3.2018, claiming income at Rs.15,16,33,050/-, claiming TDS at Rs.5,49,69,762/- and claiming the tax liability/refund as nil. The return of the petitioner was selected for scrutiny and the petitioner was asked to reconcile the TDS claim with the Form No.26AS. The petitioner, vide the letter dated 5.12.2019 had explained the claim of TDS, however, according to the petitioner, the assessment order was passed under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") on 5.2.2020, determining the income at Rs.15,42,40,449/-. While computing the demand pursuant to the assessment order, the respondent had given credit of TDS only to the extent of Rs.5,23,42,140/-. Resultantly, a demand of Rs.58,93,233/- was raised.