Income Tax

LG Electronics India Pvt. Ltd. v. Deputy Commissioner of Income Tax

This writ petition was filed in the Delhi High Court, and the judgement in respect of the same was pronounced on 25^th February 2022, wherein the petitioner had challenged the intimation dated 31st March 2021, issued under Section 143(1) of the Income Tax Act, 1961¹ (‘Act’). The present article shall discuss the aspects covered in this case.

Facts of the Case

• Apart from challenging the intimation, the petitioner, alternatively, sought a direction to the Respondents for the disposal of the application dated 14th April 2021, filed under Section 154 of the Act, seeking rectification of the impugned intimation.
• It has been averred by the petitioner that despite opting to be taxed as per Section 115BAA of the Act, wherein a tax rate of 22% has been prescribed, the Respondents, by the impugned order, have applied the tax rate of 25% as mandated under Section 115BA of the Act.
• The respondent’s counsel stated that after taking the approval of the Director of Income Tax, Central Processing Unit (CPC), Bangalore, the rectification rights, in this case, were reverted to CPC and rectification of intimation under Section 143(1) has been carried out.
• However, owing to some technical reasons, the accounting of the order under Section 154 couldn’t be completed on 24th February 2022, and the same may get completed by 25th February 2022.
• There has been the cancellation of the demand raised in intimation under Section 143(1) for Assessment Year  (AY) 2020-21, and once the accounting of the rectification order is completed at CPC, the refund due will be determined.

Judgement

Given the aforesaid development, the court directed the CPC for ascertaining and processing the refund per the law and therefore disposed of the writ petitions after providing such directions.

Conclusion

The present judgement deals with the role of the Central Processing Unit in cases of rectification of intimation under Section 143(1). This judgement can be helpful for the other assessees in case of such an issue being raised in the future

Read Our Article: Section 80G of the Income Tax Act 1961: An Overview

1. https://incometaxindia.gov.in/pages/acts/income-tax-act.aspx