GUWAHATI, India, June 7 -- Gauhati High Court issued the following order on May 7:

1.Heard Mr. G.N. Sahewalla, learned Senior Counsel assisted by Ms. K. Bhattacharyya, learned counsel for the petitioner. Also heard Mr. S.C. Keyal, learned Standing Counsel, Income Tax Department; Mr. T.J. Mahanta, learned Senior Counsel/Standing Counsel, Gauhati High Court for respondent No.5 and Ms. S. Agarwal, learned counsel appearing for respondent No.6.

2. This writ petition is filed by the petitioner challenging the demand notices issued by the Income Tax Department under Section 143(1) of the Income Tax Act, 1961 (hereinafter to be referred to be "Income Tax Act") pertaining to different Financial Years starting from 2008-2009, 2010-2011, 2011-2012, 2012-2013 and 2013-2014, respectively, raising a demand for payment of taxes of Rs.8,40,370.00. The petitioner has also prayed to issue a direction to the respondent Income Tax Department to allow credit of the aforesaid amount in computing the income tax for the aforementioned financial years.

3. The brief facts of the case are that the petitioner had served as a Judge of the Gauhati High Court from October, 1997 to August, 2007, and thereafter had also worked as Upa-Lokayukta, Assam from 28.04.2010 to 31.08.2012. It is the precise case of the petitioner that during his tenure as a Judge of the Gauhati High Court and Upa-Lokayukta, Assam, advance Income Tax used to be deducted at source (TDS) by the respective employers for the Financial Years starting from 2008-09, 2010-2011, 2011-2012, 2012-2013 and 2013-2014 from his salary/pay bills and were credited to the account of the respondent Income Tax Department.

4. It is claimed by the petitioner that the advance taxes deducted at source (TDS) were not reflected in Form 26AS (TDS/TRACES) due to inadvertence by the respective employers and as a consequence of which the respondent authorities did not allow credit of TDS (deducted at source) while computing the income tax of the petitioner for the above mentioned Financial Years and raised demands calling upon the petitioner to pay the said amount. The description of the demand notices issued by the Income Tax Department to the petitioner is as follows:

Table omitted, can be viewed at: (https://hcservices.ecourts.gov.in/ecourtindiaHC/cases/display_pdf.php?filename=tuqye3PhFs%2BBDn75ghiOpLYyALZ4z62Sht5Ez5ubORbqdFpGPRnaXWwjasVy2il0&caseno=WP(C)/2260/2023&cCode=1&cino=GAHC010088972023&state_code=6&appFlag=)

5. The petitioner further contends that being aggrieved with the aforesaid demand for tax, he had furnished explanation to the respondent authorities along with Form 16AS and also furnished the Certificates of Deduction issued by the respective employers, i.e. Gauhati High Court and the Office of the Lokayukta, Assam with a prayer to the respondent Income Tax Department to allow credit of the said amounts and to adjust the same against the taxes paid for the respective Financial Years. However, the Income Tax Department did not allow credit of the aforesaid amounts but insisted for payment of the same again.

6. The petitioner has placed reliance on Section 205 of the Income Tax Act and has contended that as per the above provision, the Income Tax Department cannot raise demands as has been raised through the impugned demand notices and cannot refuse to credit the said amounts and to adjust the same against the taxes paid for the respective financial years. Along with the writ petition the petitioner has produced the documents in support of his claim that the TDS so deducted by the respective employers for the aforementioned Financial Years which had also been duly deposited with the Income Tax Department.

*Rest of the document can be viewed at: (https://hcservices.ecourts.gov.in/ecourtindiaHC/cases/display_pdf.php?filename=tuqye3PhFs%2BBDn75ghiOpLYyALZ4z62Sht5Ez5ubORbqdFpGPRnaXWwjasVy2il0&caseno=WP(C)/2260/2023&cCode=1&cino=GAHC010088972023&state_code=6&appFlag=)

Disclaimer: Curated by HT Syndication.