BHAJAN LAL,SIRSA V. ITO WARD - 1 , SIRSA

ITA 1151/CHANDI/2025

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The case involves Shri Bhajan Lal, who acted as a commission agent (Kaccha Arhtia) and received payments from traders on behalf of farmers. These payments, although not the assessee's revenue, had TDS deducted under section 194Q of the Income Tax Act. The assessee claimed the TDS credit, which was initially denied by the CPC under section 154, leading to this appeal. The Tribunal examined the nature of the transactions and the applicability of Rule 37BA(2), which pertains to the issuance of TDS certificates in the name of clients. The Tribunal concluded that since the TDS was deducted from payments that were not the assessee's revenue, the credit should be allowed to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788665 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 08-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN LD.
• Assessee Lawyers: KARTIK GARG VIRTUAL LD
• Keywords: TDS; Rectification of order
• Section: 154

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH HYBRID HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.1151/CHANDI/2025 (िनधाŊरणवषŊ / Assessment Year: 2022-23) Shri Bhajan Lal 94-B, Anaj Mandi, Ellenabad, Sirsa, Haryana-125102 बनाम/ Vs. ITO Ward-1, Sirsa Sector-20, HUDA Sirsa, Haryana-125055 ˕ायीलेखासं./जीआइआरसं./PAN/GIR No. AAJPL-4163-A (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Kartik Garg (CA) (Virtual) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Dr. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 25-11-2025 घोषणाकीतारीख /Date of Pronouncement : 25-11-2025 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2022- 23 arises out of an order of Ld. Addl. / JCIT (Appeal), Pune dated 19- 08-2025 in the matter of a rectification order passed by CPC u/s 154 on 05-05-2023 denying TDS credit of Rs. 42,726/- as claimed by the assessee. Having heard rival submissions, the appeal is disposed-off as under. 2. It could be seen that Ld. CIT(A) has denied the credit by invoking Rule 37BA(2) since the assessee acted as commission agent and carried out sales on behalf of its principals. The Ld. CIT(A) upheld Printed from counselvise.com 2 denial of TDS credit on the ground that the assessee ought to have got TDS certificates issued in the name of his clients. 3. From assessee’s pleadings, it could be seen that the assessee has acted as Kaccha Arhtia. The assessee receives payment from traders on behalf of the farmers against commission income. The commission receipts become the income of the assessee. However, few of the traders have deducted TDS u/s 194Q against gross receipts which are not the receipts for the assessee. These receipts would never be offered as revenue receipts. Nevertheless, TDS has been deducted against assessee’s payment and it is the assessee’s money which has been deducted by the traders. Therefore, the credit of the same would certainly be available to the assessee. Therefore, I direct Ld. AO to grant impugned TDS credit of Rs.42,726/-. 4. The appeal stand allowed. Order pronounced on 25th November, 2025. Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER Dated: 25-11-2025 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "