SANTUKA AGENCIES Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS writ petition has been filed with a prayer to direct opp. party no. l -Income Tax Officer, Ward -2(2) Cuttack and opp. party no.2 -Addl. Commissioner of Income Tax, Range -2, Cuttack for issuance of refund voucher in favour of the petitioner at the earliest with interest at12 percent per annum on the ground that the action of opp. party nos.1 and 2 are contrary to the provisions of the statute.

(2.) THE petitioner's case in a nutshell is that the petitioner filed its return of income on 01.09.2003 for the assessment year 2003 -04 claiming refund of Rs.1,70,691/ -. The total tax payable in respect of the income disclosed in the return was Rs.1,14,800/ - as against which the tax of Rs.2,15,491/ - was deducted at source and advance tax amounting to Rs.70,000/ - was paid. Thus against the tax liability of Rs.1,14,800/ -, Rs.2,85,491/ - was paid for the assessment year 2003 -04. Therefore in the return form under Annexure -1 and in the statement of income under Annexure -2, the petitioner claimed refund of Rs.1,70,691/ -. Despite filing several representations, since no refund is granted to the petitioner, the present writ petition is filed claiming the above relief.

(3.) MR . A.K. Mohapatra, learned Senior Standing Counsel appearing on behalf of the opp. parties referring to the counter affidavit filed by opp. party nos. 1 to 3 submitted that the claim of the petitioner for refund is barred by time and it is not maintainable. The allegation of the petitioner regarding any apparent inaction and recalcitrant attitude of the Income Tax Authorities relating to non - issue of the refunds claimed for the assessment year 2003 -04 amounting to Rs.1,70,691/ - is totally baseless. From the annexures appended to the writ petition, it is found that on behalf of the petitioner for the first time a letter was addressed to the Addl. CIT, Range -2, Cuttack on 16.07.2008 received in the office on 18.07.2008 claiming that the refund for Rs.1,70,691/ - was not received by the assessee till 16.07.2008. Under the provisions of the Income Tax Statute, a return of income filed for the assessment year 2003 -04 has to be processed under Section 143(1) of the Income Tax Act, 1961 by March, 2005. As per the existing administrative regulation, any refund claimed which is found lawfully payable by the Income Tax Department to the tax payers exceeds Rs. 1 lakh, it has to be approved by the Range Officer before the refund amount is paid to the assessee. From the registers and records available in the office of the ITO, Ward - 2 (2), Cuttack, it transpires that necessary action had been duly taken by the Assessing Officer/Range Officer for processing the return of income and to obtain administrative approval for refund of amount exceeding Rs.1 lakh in the case of M/s.Santuka Agencies for the assessment year 2003 -04. From verification of return of income filed by the partnership firm on 01.09.2003 along with copies of TDS certificates, computation of total income statement, tax audit report, P & L Account, balance sheet for the financial year 2002 -03, it transpires that as per the TDS certificates the assessee had earned gross interest income of Rs.11,01,577/ - on which TDS was made by the payer for Rs.11,567/ -. Similarly the assessee had executed contract works for gross amount of Rs.1,57,531/ - from which TDS was made by the contractee amounting to Rs.3,310/ -. Further the TDS certificates in respect of commission payment revealed that the gross commission amount was Rs.17,31,891/ - from which the payer had deducted TDS for Rs.96,514/ -. The sum total of TDS amount was Rs.2,15,491/ - and the sum total of receipts under the head interest, contract works and commission taken together amounted to Rs.29,90,999/ -. The verification of tax audit report and P & L Account enclosed to the return of income filed shows no separate head of receipts in the credit side of the P & L Account in respect of interest income of Rs.11,01,577/ - and contractual works receipts of Rs.1,57,531/ -. The commission amount credited to the P & L Account shows total commission of Rs.18,35,783/ - whereas as per TDS certificate the commission amount was Rs.17,31,891/ -.