Centralized processing of statements of tax
deducted at source (TDS returns) u/s 200A which was filed u/s 200 –
Rectification of order u/s 154 - enhancing the demand - Reasonable
opportunity u/s 154(3) of being heared - Held that:- The Department has
sought to achieve a comprehensive processing of statements filed under
sub-section (3) of Section 200 of the Act, including rectification of a
mistake in the statement u/a 154 of the Act - when once a Statement is
filed under sub-section (3) of Section 200 of the Act, Clauses (4), (5)
and (7) of the Scheme come into operation - The format of the
application for rectification is as stipulated in sub-clause (2) -
Sub-clause (3) is relevant for the purpose of the case, which states
that, where a rectification has the effect of reducing the refund or
increasing the liability of the deductor, an intimation to that effect
shall be sent to the deductor electronically by the Cell and the reply
of the deductor shall be furnished in the form and manner specified by
the Director General - no doubt the intimations that are issued u/s 154
of the Act - But, when the scheme itself envisages that the intimation
must be issued so as to call for a reply from the deductor then it
cannot be in the form of a demand u/s 156 of the Act - what is envisaged
is that before any order is passed under Clause (6) of the Scheme, an
intimation has to be sent to the deductor, which is in the nature of a
showcause notice and after receiving a reply from the deductor and
considering the same, an order has to be passed, then it would be deemed
to be a notice of demand under Section 156 of the Act.
Instead of directing the respondents-authorities to re-initiate fresh proceedings u/s 154 of the Act, for the sake of convenience of the parties, the annexures could be construed as show cause notices or intimations as stated in sub-clause (3) of Clause (6) of the Scheme to which the petitioner is at liberty to reply within a period of three weeks from the date of receipt of a certified copy of this order and on receipt of the reply by the respondents- Authorities, the same shall be considered in accordance with law and a speaking order be passed thereon – Decided in favour of assessee
Instead of directing the respondents-authorities to re-initiate fresh proceedings u/s 154 of the Act, for the sake of convenience of the parties, the annexures could be construed as show cause notices or intimations as stated in sub-clause (3) of Clause (6) of the Scheme to which the petitioner is at liberty to reply within a period of three weeks from the date of receipt of a certified copy of this order and on receipt of the reply by the respondents- Authorities, the same shall be considered in accordance with law and a speaking order be passed thereon – Decided in favour of assessee
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