ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(1), CHENNAI, CHENNAI V. ACQUEON TECHNOLOGIES PRIVATE LIMITED, CHENNAI

ITA 1805/CHNY/2024

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax, Corporate Circle 1(1), Chennai against Acqucon Technologies Private Limited concerning the assessment year 2009-10. The primary issue was the failure of the Commissioner of Income Tax (Appeals) to verify and provide a finding on whether the corresponding income was offered by the assessee and to allow TDS credit accordingly. The Tribunal found that the CIT(A) had incorrectly directed the Assessing Officer to give credit for taxes paid as per Form 26AS without proper verification of the corresponding income, particularly in light of the disallowance of delay remittance of employee's contribution to PF under section 36(1)(va) of the Income Tax Act, 1961.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107435 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-10-2024
• Assessment Year: 2009-2010
• Appeal Filed On: 27-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Keywords: TDS; FORM 26AS
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी अिमताभ शुƑा, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. No.1805/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2009-10 The Assistant Commissioner of Income Tax, Corporate Circle 1(1), Chennai. Vs. Acqucon Technologies Private Limited, 4600 4 197 Seventh Street, Dr. VSI Estate Phase II, Tiruvanmiyur S.O., Chennai 600 041. [PAN: AAACI0947F] (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Ms. Gouthami Manivasagam, JCIT ŮȑथŎ की ओर से/Respondent by : None सुनवाई की तारीख/ Date of hearing : 01.10.2024 घोषणा की तारीख /Date of Pronouncement : 09.10.2024 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the Revenue is directed against the order dated 22.05.2024 passed by the ld. Commissioner of Income Tax (Appeals), Chennai-16, Chennai for the assessment year 2009-10. 2. This Registry issued notice dated 20.09.2024 to the Respondent- assessee intimating the date of hearing on 01.10.2024. However, we find no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, the assessee-respondent called absent and I.T.A. No.1805/Chny/24 2 set exparte and proceed to decide the appeal after hearing the ld. DR basing on the material available on record. 3. We find the only effective ground raised by the Appellant-Revenue in challenging the action of the ld. CIT(A) in failing to verify and give a finding of whether corresponding income was offered by the assessee and allowed TDS credit accordingly. 4. At the outset, we find in para 4 & 5 of the impugned order, the ld. CIT(A) reproduced grounds raised by the assessee in respect of non- consideration of TDS/TCS credit and regular tax assessment credit. Admittedly, these issues are emanating from the giving effect order passed by the Assessing Officer under section 143(3) r.w.s. 254 of the Income Tax Act, 1961 [“Act” in short]. The Assessing Officer not allowed TDS credit to an extent of ₹.75,64,754/- and regular tax assessment credit to an extent of ₹.16,95,214/-. The ld. CIT(A), on satisfaction and after cross verification of documentary evidence, directed the Assessing Officer to give credit for taxes paid as per Form 26AS as stated at page 5 of the impugned order. On perusal of the giving effect order dated 20.11.2020 passed by the Assessing Officer, we note that the TDS credit was given at ₹.2,04,74,986/- as against ₹.2,80,39,740/-, which is evident from page 4 of the impugned order. Likewise, regular tax assessment I.T.A. No.1805/Chny/24 3 credit was allowed at ₹.2,65,59,125/- as against ₹.2,82,54,339/-, accordingly to the assessee, the shortfall is of ₹.75,64,754/- and ₹.16,95,214/- respectively. In para 4(a) at page 4 of the impugned order, we find that ld. CIT(A) confirmed the disallowance towards delayed remittance of employee’s contribution to PF under section 36(1)(va) of the Act. Thus, the ld. CIT(A) directing the Assessing Officer to give credit for taxes paid as per Form 26AS is found to be incorrect. Therefore, we set aside the order of the ld. CIT(A) on this issue and direct the Assessing Officer to verify the corresponding income arising out of confirmation of disallowance of delay remittance of employee’s contribution and allow TDS credit in accordance with law. Thus, the ground raised by the Revenue is allowed. 5. In the result, the appeal filed by the Revenue is allowed. Order pronounced on 09th October, 2024 at Chennai. Sd/- Sd/- (AMITABH SHUKLA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 09.10.2024 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: I.T.A. No.1805/Chny/24 4 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "