DEPUTY COMMISSIONER OF INCOME-TAX (EXEMPTIONS), CIRCLE-2, AHMEDABAD, AHMEDABAD V. DEENDAYAL PORT AUTHORITY , GANDHIDHAM

ITA 150/AHD/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals), which allowed the Deendayal Port Authority's claim for TDS credit based on the updated Form 26-AS for the Assessment Year 2017-18. Initially, the AO had restricted the TDS credit due to discrepancies between the Form 26-AS and the figures reported in the Profit & Loss account. The CIT(A) directed the AO to verify the updated Form 26-AS and grant the credit accordingly. The Tribunal upheld the CIT(A)'s decision, noting that the TDS credit must be allowed when the revenue from which it was deducted has been offered for taxation, subject to verification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29605 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Other Referred Cases: ITA No.881/Ahd/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. NANDAKUMAR
• Assessee Lawyers: TUSHAR HEMANI
• Keywords: Set aside; TDS; FORM 26AS
• Section: 143(3); 201; 263

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ “बी“, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD सु\u0017ी सुिच\u0019ा का \u001aले, \u0012ा ियक सद\u001c एवं \u0017ी मकरंद वसंत महा देवकर, लेखा सद\u001c क े सम\"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.150/Ahd/2024 िनधा \u0010रण वष\u0010 /Assessment Year : 2017-18 DCIT (Exemptions) Circle-2 Ahmedabad बनाम/ v/s. Deendayal Port Authority Administrative Officer Post Box No.50 Gandhidham Kachchh – 370 201 (Gujarat) \u0014थायी लेखा सं./PAN: AAALK 0046 N अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee by : Shri Tushar Hemani, Sr.Advocate Revenue by : Shri V. Nandakumar, CIT-DR सुनवाई की तारीख/Date of Hearing : 05 /03/2025 घोषणा की तारीख /Date of Pronouncement: 06 /03/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: This appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”], dated 31.01.2023, for the Assessment Year (AY) 2017-18, wherein the CIT(A) allowed the claim of the assessee for TDS credit based on the updated Form 26-AS. ITA No.150/Ahd/2024 DCIT(E) vs. Deendayal Port Authority Asst. Year : 2017-18 2 2. The solitary ground of appeal raised by the Revenue reads as under: “Whether, on the facts and circumstances of the case, Ld. CIT(A) has erred in allowing the excess T.D.S. credit claimed by assessee after filing its Return of income u/s.139 of Income tax Act, 1961, in violation of section 239 and section 155(14) of the Income tax Act, 1961.” 3. The brief facts of the case are that the assessee was initially assessed under section 143(3) of the Income Tax Act on 28/12/2019, determining an assessed income of Rs.9,15,21,29,220. Subsequently, the CIT (Exemption), Ahmedabad, invoked section 263 of the Act and set aside the order passed under section 143(3) of the Act on the ground that the AO had not properly examined certain issues, including the disallowance of CSR expenses. Pursuant to the revisionary order under section 263 of the Act, the AO passed a fresh assessment order under section 143(3) r.w.s. 263 of the Act , wherein the AO observed a clerical discrepancy in CSR expenses as per Form 3CD and the Profit & Loss account. The CSR expenses were initially recorded as Rs.26,00,000 in Form 3CD, but in the Profit & Loss account, they were debited as Rs.2,60,00,000, leading to an addition of Rs.2,34,00,000. 3.1. Further, the AO recomputed the income and made various additions. As a result, the total assessed income was determined at Rs.9,17,55,29,222/-. In the computation sheet annexed to the order, the AO restricted the TDS credit to Rs.1,40,00,64,531/-, as against Rs.1,42,83,11,367/- as per Form 26AS, resulting in a shortfall of Rs.2,82,46,836/-. The assessee filed rectification application before the AO but observed some discrepancies in allowing TDS credit in the computation sheet (dated 29/09/2023) attached to the order u/s. 154 of the Act passed by the AO. ITA No.150/Ahd/2024 DCIT(E) vs. Deendayal Port Authority Asst. Year : 2017-18 3 4. Aggrieved by the order of AO, the assessee filed an appeal before the CIT(A). The CIT(A), after due consideration, allowed the increased TDS credit totaling to Rs.1,42,83,11,367/- relying on the updated Form 26AS. The CIT(A) directed the AO to verify the updated Form 26AS and grant credit accordingly. 5. During the course of the hearing before us, the Learned Departmental Representative (DR) conceded the issue. The DR submitted that the Department does not contest the correctness of the TDS credit as determined by the CIT(A). The DR submitted that the matter may be referred to the AO for verification and necessary compliance as per the CIT(A)’s directions. 6. The Authorized Representative (AR) of the assessee sated that the corresponding revenue from which the TDS was deducted is already offered for taxation. The AR also relied on the order of the Co-ordinate Bench in ITA No.881/Ahd/2024 for AY 2019-20 (in assessee’s own case) dated 13/12/2024, wherein the Co-ordinate Bench has dismissed the appeal of the Revenue. 7. In light of the Department's concession and the facts on record as also considering the order of the Co-ordinate Bench(supra), we find no infirmity in the order of the CIT(A). The CIT(A) has correctly allowed the TDS credit as reflected in the updated Form 26-AS and directed the AO to verify and grant the credit. It is a settled principle of law that TDS credit appearing in Form 26-AS must be allowed when the revenue relating to such credit is already offered to tax, subject to verification. ITA No.150/Ahd/2024 DCIT(E) vs. Deendayal Port Authority Asst. Year : 2017-18 4 8. Accordingly, we dismiss the Revenue's appeal as infructuous. The AO is directed to verify the updated Form 26-AS for the relevant assessment year and grant TDS credit Rs.1,42,83,11,367/- as determined by the CIT(A). The AO is also directed to verify that the corresponding revenue is included in the total income of the assessee. 9. In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the Open Court on 6th March, 2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 06/03/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय #ितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (Copied matter) : 05.03.2025 2. Date on which the typed draft is placed before the Dictating Member. : 05.03.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 06.03.2025 7. Date on which the file goes to the Bench Clerk. : 06.03.2025 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "