Case Law Details
Fada Trading Private Limited Vs Income Tax (Delhi High Court)
Introduction: In a recent development, the Delhi High Court addressed a tax deposit discrepancy in the case of Fada Trading Private Limited against Income Tax Ward 9(1). The court directed the CBDT (Central Board of Direct Taxes) to resolve the issue promptly. This article provides a comprehensive analysis of the case, outlining the petitioner’s concerns, the court’s directions, and the possible resolutions proposed before the CBDT.
Detailed Analysis:
1. Background and Legal Proceedings: Fada Trading Private Limited raised concerns about a mistake in the deposit of self-assessment tax. The petitioner acknowledged the error in two challans, wherein Rs. 40,00,000/- was mistakenly attributed to Assessment Year (AY) 2019-20 instead of AY 2020-21. The petitioner approached the Assessing Officer to rectify the record and later sought the CBDT’s intervention.
2. Petitioner’s Grievance and Proposed Resolutions: The primary grievance revolves around the inadvertent deposit against the wrong assessment year. The petitioner proposed three alternatives for resolution: refund the amount, condone the delay for filing a revised return, or allow adjustment of the deposit against another AY.
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