Udayan Bhaskaran Nair Vs DCIT (Bombay High Court)
The writ petition challenged the alleged demand raised for Assessment Year (A.Y.) 2010-11 and the non-disposal of a rectification application filed under Section 154 of the Income Tax Act, 1961. The petitioner, a salaried employee during A.Y. 2010-11, had worked in the United Kingdom for six months with Pershing Limited, an associate of his Indian employer, iNautix Technologies Private Limited. During his UK assignment, tax was deducted in accordance with UK laws. Upon returning to India, he received salary from the Indian employer, which issued Form-16 reflecting a gross salary of Rs.30,37,539/- including UK salary of Rs.8,69,078/-. The Form-16 recorded total TDS of Rs.7,42,184/-, which included foreign tax withheld of Rs.1,86,531/- as stated in a footnote.
The petitioner filed his return claiming TDS credit of Rs.7,42,184/- as per Form-16. He asserted that he never received any intimation under Section 143(1). However, in November 2017, he received an intimation under Section 245 proposing to adjust refund for A.Y. 2017-18 against an alleged outstanding demand of Rs.1,86,370/- for A.Y. 2010-11. He filed a rectification application on 11.04.2018 stating that he had not received any demand earlier and that the demand appeared to arise from non-granting of foreign tax credit. The rectification application remained undisposed.
