CBDT has vide Notification No. 3/2013, dated 15-1-2013 introduced Centralised Processing of Statements of Tax Deducted at Source Scheme, 2013 for centralised processing of statements of tax deducted at source. Vide clause 4 of the notification CBDT has specified that correction statement of tax deducted at source shall be furnished under digital signature or verified through a process in accordance with the procedure, formats, and standards specified by the Director General.
Relevant Potion of the above Circular is as follows :-
Furnishing of correction statement of tax deducted at source”
(1) A deductor shall furnish the correction statement of tax deducted at source in the form specified by the Director General-
(a) at the authorised agency through electronic mode; or
(b) online through the portal.
(2) The correction statement referred to in sub-paragraph
(a) shall be furnished under digital signature or verified through a process in accordance with the procedure, formats, and standards specified by the Director General.
Undisputedly, the assessee company earned income of Rs. 4,65,00,000/- only by way of Engineering fees. Another amount of Rs 4,65,00,000/- had been received as tooling advance. This latter amount was to be paid to the vendors of M/s. Mahindra and Mahindra Ltd. This payment was a reimbursement. That being so, it could not be considered as the income of the assessee company. It was by sheer mistake that M/s. Mahindra and Mahindra Ltd. has deducted TDS on the whole amount of Rs 9,30,00,000/-. The TDS amount was thus in excess of the assessable tax on the payment made by M/s. Mahindra and Mahindra Ltd. to the assessee company. This had to be refunded, as held by the Hon’ble Supreme Court in the case of Sandvik India LTd. v. CIT 280 ITR 643(SC). This position has duly been considered and rightly so, by the ld. CIT(A) in the impugned order. If wrong tax has been paid, it is of necessity to be returned, lest the department be charged of unjust enrichment.
Admittedly, as per TDS certificate issued by Mysore Breweries Limited, the total reimbursement made to the assessee as per their newly arrangement was Rs. 3,35,85,000/-. However, in the books of assessee, it was only Rs. 2,54,97,000/-. The assessee had explained that a credit note of Rs. 80,88,000/- issued by it in favour of Mysore Breweries Limited was not accounted for by them and, therefore, by this amount they had shown higher reimbursement to assessee. The contention of the assessee was that it was a case of clerical error committed by subsidiary Mysore Breweries Limited which was duly confirmed by Mysore Breweries Limited.
The assessee relied on the decision of Hon’ble Delhi High Court in the Case of Sudhir Sekhri vs. ACIT (Delhi HC) , wherein it was, inter-alia, held that where the issuer of the certificate had certified that the mistake had crept in due to the pre-fed computer programme and certified that no other charges other than what was reflected in the books of account of the assessee had been paid to the assessee, the addition was not justified merely on the basis of discrepancy in the TDS certificate and amount recorded in the books of account.
Under such circumstances, we find that the decision of Hon’ble Delhi High Court in the case of Sudhir Sekhri (supra) is squarely applicable to the facts of the case and, therefore, the addition of Rs. 80,88,000/- was wholly unwarranted.