Case Law Details
Vajra Global Consulting Services LLP Vs Assistant Director of Income Tax (Madras High Court)
Introduction: The legal battle between Vajra Global Consulting Services LLP and the Assistant Director of Income Tax reached its culmination with a significant judgment from the Madras High Court on the 27th of March 2021. The subsequent order on the 10th of July 2023 added depth to the challenge. This article delves into the details of the case, focusing on a claimed refund and discrepancies in TDS credits.
Detailed Analysis: The petitioner, Vajra Global Consulting Services LLP, filed its income tax return for the assessment year 2020-2021, asserting a TDS credit of Rs. 10,88,863/-. However, an anomaly arose as the TDS of Rs.7,65,000/- deducted by M/s. Richfeel Health and Beauty Private Limited was not initially reflected in Form 26AS.
Despite filing a rectification petition and subsequent disposal on 09.12.2021, the petitioner found no resolution. The discrepancy became apparent as the Form 26AS detailed the total TDS deduction as Rs.18,53,863/ but the credit was given only for Rs.10,88,863/-.
During the legal proceedings, learned counsel highlighted these discrepancies, asserting the petitioner’s right to the full TDS credit. The standing counsel for the respondents acknowledged the oversight, conceding that the petitioner was indeed entitled to the differential amount of Rs.7,65,000/-.
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