M/s. EPCOS Electronic Components S. A. Vs Union of India (Delhi High Court)
The next issue is whether the intimation under Section 143(1) of the Act was prejudicial to the interest of the Assessee. It must be noted here that although the tax calculated as payable in the return filed and accepted by the Department by sending intimation under Section 143(1) of the Act is nil, it cannot be said that no prejudice is caused to the Assessee thereby. The Assessee has voluntarily paid tax at the rate of 20% in terms of the Indo Spain DTAA as tax on FTS and therefore there was no further tax to be paid at the time of filing of the return. However, it is not even denied by the Department that the Petitioner committed a mistake and should have paid tax at 10%. Even though, this extra 10% paid by the Petitioner was of its own volition, it was indeed prejudicial to the Assessee/Petitioner. Consequently, all the ingredients of Section 264 of the Act stand attracted. It is accordingly held that a revision petition under Section 264 of the Act by the Petitioner before the CIT against the intimation under Section 143(1) of the Act was maintainable.
