DEPUTY COMMISSIONER OF INCOME TAX-1(3)(1), MUMBAI, MUMBAI V. TATA COMMUNICATIONS LIMITED, MUMBAI

ITA 5979/MUM/2024

AI Insights

The case involves Tata Communications Ltd. appealing against the order of the CIT(A) which allowed TDS credit of Rs. 4,87,05,943 based on physical certificates, despite these not appearing in the 26AS on the TRACES site. The revenue challenged this decision, arguing that the CIT(A) did not verify the TDS certificates during the first appeal proceedings. The Tribunal referenced decisions from the Delhi High Court and the Bombay High Court, which supported the assessee's position that a valid TDS certificate should be honored. However, the Tribunal also noted the need for the AO to verify the facts before granting the credit, leading to the modification of the CIT(A)'s findings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398133 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Other Referred Cases: Court On Its Own Motion v/s CIT in WP (Civil) 2659/2012, Yashpal Sahni 293 ITR 539
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HEMANSHU JOSHI
• Assessee Lawyers: NITESH JOSHI
• Keywords: Question of law; TDS
• Section: 143(3)

Judgement Text

" |आयकर अपीलीय न्यायाधिकरण न्यायपीठ, म ुंबई| IN THE INCOME-TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER आयकर अपील सुं./ITA No. 5979/MUM/2024 (नििाारण वर्ा / Assessment Year :2011-12) DCIT-1(3)(1), Mumbai Room No. 540, 5th Floor, Aayakar Bhavan, M.K. Road, Churchgate, Maharashtra-400020 v/s. बिाम TATA Communications Ltd. Videsh Sanchar Bhavan, Mahatma Gandhi Road, Fort, Mumbai GPO, Maharashtra-400001 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACV2808C Appellant/अपीलार्थी .. Respondent/प्रनिवादी निर्ााररती की ओर से /Assessee by: Shri Nitesh Joshi राजस्व की ओर से /Revenue by: Shri Hemanshu Joshi स िवाई की िारीख / Date of Hearing 03.06.2025 घोर्णा की िारीख/Date of Pronouncement 05.06.2025 आदेश / O R D E R PER NARENDRA KUMAR BILLAIYA [A.M.]:- This appeal by the revenue is preferred against the order dated 22.08.2024 by NFAC, Delhi pertaining to AY 2011-12. P a g e | 2 ITA No. 5979/Mum/2024 A.Y. 2011-12 Tata Communications Ltd. 2. The grievance of the revenue reads as under: “Whether on the facts and in the circumstances of the case and in law, the CIT(A) was justified in allowing the appeal of the assessee on the ground of credit against physical TDS certificate to the extent of Rs. 7,78,54,395/- which were not appearing in 26AS on TRACES site and the Ld. CIT(A) has neither give any direction to verify TDS nor any specific comments on this issue whether those were verified at the stage of first appeal proceedings.” 3. Briefly stated facts of the case are that an assessment was framed u/s 143(3) r.w.s. 92CB(3) of the Act vide order dated 21.03.2018. While allowing tax credit, AO denied the TDS credit, which was supported by physical certificates amounting to Rs 4,87,05,943/-. The assessee agitated the matter before CIT(A), and the CIT(A) drawing support from the decision of the Hon’ble Delhi High Court in the case of Court On Its Own Motion v/s CIT in WP (Civil) 2659/2012 order dated 14.03.2013 held that once a valid TDS certificate had been produced, the AO is directed to give the credit to TDS as claimed by the assessee. 4. Before us, the DR strongly contended that without verifying the facts, the TDS credit cannot be allowed and prayed for the modification of the finding of the CIT(A). 5. Per contra, the counsel strongly stated that once the tax credit is supported by valid TDS certificate, there is no question of any verification and denial. In support of his contention, strong reliance was placed on the decision P a g e | 3 ITA No. 5979/Mum/2024 A.Y. 2011-12 Tata Communications Ltd. of the coordinate bench in ITA Nos. 852 and 853/Mum/2014 for AY 2010-11 and 2011-12. The counsel pointed out that the said order of the coordinate bench has been upheld by the Hon’ble High Court of Bombay in ITA Nos. 1745 & 1746 of 2016 by order dated 22.01.2019. 6. We have given a thoughtful consideration to the order of the authorities below and have carefully perused the decisions relied upon by the counsel. The entire quarrel revolves around the denial of TDS credit supported by the physical certificates amounting to Rs. 4,87,05,943/-. It is a fact that if the credit is claimed by filing physical TDS certificate, the same cannot be denied, as held by the Hon’ble High Court of Delhi (supra) and the Hon’ble High Court of Bombay in the case of Yashpal Sahni 293 ITR 539. It is equally true that the decision of the coordinate bench mentioned hereinabove has been upheld by the Hon’ble High Court of Bombay mentioned hereinabove. 7. We find that while upholding the order of the coordinate bench, the Hon’ble High Court held that, “Resultantly, the Tribunal only directed the AO to verify the correct facts and give credit of TDS to the assessee. No question of law arises.” P a g e | 4 ITA No. 5979/Mum/2024 A.Y. 2011-12 Tata Communications Ltd. 8. In the line of the findings given by the Hon’ble jurisdictional High Court (supra), we direct the AO to allow full credit of TDS supported by the physical certificates after verifying the correct facts. 9. With the above modification to the findings of the CIT(A), the appeal of the revenue is allowed. Order pronounced in the open court on 05.06.2025. Sd/- Sd/- SAKTIJITT DEY NARENDRA KUMAR BILLAIYA (उपाध्यक्ष/VICE PRESIDENT) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 05.06.2025 अननक ेत स ुंह र जपूत/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) P a g e | 5 ITA No. 5979/Mum/2024 A.Y. 2011-12 Tata Communications Ltd. आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "