Sojitz Asia Pvt. Ltd. Vs CIT (International Tax) (Delhi High Court)
Same Income, Two Assessment Years & Double Tax—That Is Itself “Genuine Hardship” U/s 119(2)(b): Delhi HC
Summary: The Delhi High Court has held that where the same income was inadvertently offered to tax in two different assessment years due to revision of Form 26AS by the deductor, payment of tax twice on the same income itself constitutes genuine hardship warranting condonation u/s 119(2)(b). The Court observed that even the Government can tax a particular income only once in the appropriate assessment year. Retention of tax collected twice on the same income would amount to unjust enrichment by the Union of India.
Facts of the Case
The assessee, Sojitz Asia Pte. Ltd., earned interest income of ₹7,58,90,455. The amount was initially reflected by the deductor in Form 26AS pertaining to AY 2016-17. Acting upon the information appearing in Form 26AS, the assessee filed its return for AY 2016-17 & offered the interest income to tax.
Subsequently, the deductor revised the TDS particulars. The same interest income was removed from Form 26AS for AY 2016-17 & reflected in Form 26AS for AY 2018-19.
The assessee, while filing its return for AY 2018-19, once again offered the entire amount of ₹7.58 crore to tax. At that time, it failed to notice that the same income had already been offered & subjected to tax in AY 2016-17.
