CHATURVEDI SK & FELLOWS LLP,MUMBAI V. INCOME-TAX OFFICER 16(2)(1) MUMBAI, MUMBAI

ITA 5700/MUM/2024

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The case involves Chaturvedi SK & Fellows LLP, a firm of chartered accountants, appealing against the decision of the National Faceless Appeal Centre (NFAC), which partly allowed their appeal against a Rectification Order. The dispute centered on the denial of credit for TDS of INR 3,30,000 for the Assessment Year 2018-2019, which was reflected in Form 26AS for Assessment Year 2016-2017. The Assessee argued that despite following a cash basis of accounting and offering the income in the relevant previous year, the credit for TDS was denied due to an alleged omission in the carry forward of TDS in the earlier assessment year. The Tribunal found merit in the Assessee's argument and restored the issue back to the Assessing Officer for verification and appropriate action.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25449 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE; WAY OF PRESENT APPEAL
• Keywords: TDS; Rectification of order; Assessment record; FORM 26AS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI SHRI AMRJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.5700/MUM/2024 (Assessment Year: 2018-2019) Chaturvedi SK & Fellows LLP. 402, Dev Plaza, SV Road, Andheri West, Mumbai – 400058. Maharashtra. [PAN:AAGFC155L] …………. Appellant Income Tax Officer 16(2)(1), Mumbai Ayakar Bhavan, New Marine Lines, Mumbai – 400020. Maharashtra Vs …………. Respondent Appearance For the Appellant/ Assessee For the Respondent/Department : : Shri Srikant Chaturvedi Shri Mahesh Pamnani Date Conclusion of hearing Pronouncement of order : : 29.01.2025 31.01.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member: 1. The present appeal preferred by the Assessee against the order, dated 20/08/2024, passed by the National Faceless Appeal Centre (NFAC), Delhi,[hereinafter referred to as ‘the CIT(A)’] under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] whereby the Ld. CIT(A) had partly allowed the appeal against the Rectification Order, dated 30/01/2020, passed under Section 154 of the Act for the Assessment Year 2018-2019. 2. The Assessee has raised following grounds of appeal : “1. The learned CIT-Appeals has erred in denying credit to the assessee for TDS of Rs.3,30,000/- which was duly deposited and appeared in 26AS of the assessee.” 3. The sole grievance raised by the Assessee by way of present appeal ITA No. 5700/Mum/2024 Assessment Year 2018-2019 2 is that the Assessee has been denied credit for tax deducted at source for an amount of INR.3,30,000/-. 4. The relevant facts in brief are that Assessee is a firm of chartered accountants maintaining its books of accounts on cash basis of accounting. During the relevant previous year the Assessee offered to tax income of INR.33,00,000/- and claimed credit of corresponding Tax Deducted at Source (TDS) of INR.3,30,000/-. The aforesaid TDS was reflected in 26AS pertaining to Assessment Year 2016-2017 as the payee was following mercantile system of accounting. However, the Assessee had offered the same income to tax on receipt basis in the return of income for the Assessment Year 2018-2019. The authorities below had denied credit for TDS on account for the fact that in the return of income for the Assessment Year 2016-2017 entry for carry forward of TDS of INR.3,30,000/- was not reflected. We note that it is admitted position that Assessee had offered to tax income of INR.33,00,000/- in the relevant previous year by following cash system of accounting. It is also not disputed that in Form 26AS pertaining to Assessment Year 2016- 2017 TDS credited of INR.3,30,000/- is reflected in respect of aforesaid income offered to tax by the Assessee. Accordingly, in the facts and circumstances of the present case, we deemed it appropriate to restore the issue of grant of credit for TDS INR.3,30,000/- back to the file of Assessing Officer with the direction to the Assessing Officer to grant credit of the aforesaid TDS of INR.3,30,000/- after verifying from the assessment records that (a) that TDS Credit of INR.3,30,000/- corresponds to income of INR.33,00,000/- offered to tax by the Assessee during the relevant previous year and (b) the Assessee has not claimed of said TDS of INR.3,30,000/- in any of the preceding assessment years. 5. In terms of above, Ground No.1 raised by the Assessee is allowed for statistical purposes. ITA No. 5700/Mum/2024 Assessment Year 2018-2019 3 6. In result, the present appeal preferred by the Assessee is allowed for statistical purposes. Order pronounced on 31.01.2025. Sd/- Sd/- (Amarjit Singh) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंक Dated : 31.01.2025 Milan, LDC ITA No. 5700/Mum/2024 Assessment Year 2018-2019 4 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीय प्रदिदनदध ,आयकर अपीलीय अदधकरण ,म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपि प्रदि //True Copy// उप/सह यक पुंजीक र /(Dy./Asstt. Registrar) आयकर अपीलीय अदधकरण, म ुंबई / ITAT, Mumbai ITA No. 5700/Mum/2024 Assessment Year 2018-2019 5 Sr. No. Details Date Initials Designation 1 Typed/Dictated directly on PC Sr.PS/PS 2 Draft Placed before author Sr.PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member JM/AM 5 Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6 Order pronouncement on Sr.PS/PS 7 File sent to the Bench Clerk Sr.PS/PS 8 Date on which the file goes to the Head clerk 9 Date on which file goes to the AR 10 Date of Dispatch of order "