Sanju Aggarwal Vs Union of India and Ors (Jammu and Kashmir High Court)
The Jammu & Kashmir and Ladakh High Court has stayed a tax recovery order against Sanju Aggarwal, a taxpayer, after finding that a rectifying order passed by the Income Tax Department was likely issued beyond the statutory time limit. The court’s decision, reached by mutual consent of both parties, sends the matter back to the Commissioner of Income Tax (Appeals) for a fresh review.
The case originated from an order dated September 6, 2017, in which the Assessing Officer (AO) rectified an earlier order from June 30, 2010. The rectification pertained to the tax year 2010-11 and resulted in the disallowance of a TDS credit of ₹1,55,788 that had been previously granted. Aggrieved by this, Sanju Aggarwal filed an appeal with the Commissioner of Income Tax (Appeals), arguing that the rectifying order was time-barred under Section 154(7) of the Income Tax Act, which specifies a four-year limit for such actions. The taxpayer also argued that the AO had failed to provide her with an opportunity to be heard before passing the order.
On January 23, 2019, the Commissioner of Income Tax (Appeals) allowed the appeal and directed the AO to verify the correctness of the TDS claim and allow it if it was found to be in order. However, the AO failed to comply with this directive. Instead, the taxpayer received a fresh demand for the same amount on February 12, 2020. This prompted the taxpayer to file a writ petition with the High Court.
