Anant Shripad Nanjkar, Pune V. Assistant Commissioner of Income-tax,

ITA 1867/PUN/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7658 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-04-2018
• Assessment Year: 2011-2012
• Appeal Filed On: 29-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Salary income; Wrong claim; Revised return
• Section: 54; 154

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE , BEFORE MS. SUSHMA CHOWLA, JM . / ITA NO. 1867 /P U N/201 6 / ASSES SMENT YEAR : 20 1 1 - 1 2 ANANT SHRIPAD NANJKAR, 105, PARIJATAK, S.NO.120A+120B, SINHAGAD ROAD, NEAR VEET BHATTI, PARVATI, PUNE 411030 . / APPELLANT PAN: A A LPN0997N VS. THE ASST . COMMISSIONER OF INCOME TAX , INCOME TAX (CPC, BENGALORE . / RESPONDENT / APPELLANT BY : SHRI C.H. NANIWADEKAR / RESPONDENT BY : S HRI ACHAL SHARMA / DATE OF HEARING : 1 7 . 0 4 .201 8 / DATE OF PRONOUNCEMENT: 25 . 0 4 .2 01 8 / ORDER PER SUSHMA CHOWLA, J M : TH E APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF CIT (A) , PUNE - 5, PUNE , DATED 1 6 . 0 6 .20 1 6 RELATING TO ASSESSMENT YEAR 20 1 1 - 1 2 AGAINST ORDER PASSED UNDER SECTION 1 54 OF THE INCOME - TAX ACT , 1961 (IN SHORT T HE ACT) . ITA NO. 1867 /P U N/ 20 1 6 ANANT SHRIPAD NANAJKAR 2 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL: - 1. THE LEARNED CIT(A) ERRED ON FACTS AND IN LAW IN NOT ALLOWING THE CREDIT FOR THE TAXES PAID BY THE ASSESSEE. SHE FAILED TO APPRECIATE THE FACTS AND SUBMISSIONS MADE IN ITS PROPER PERS PECTIVE. 3. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST ALLOWABILITY OF CREDIT FOR TAXES PAID BY THE ASSESSEE. 4. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE HAD FURNISHED THE RETURN OF INCOME DECLARING TOTAL INCOME OF 6,68,000/ - . THE ASSESSEE HAD DRAWN SALARY INCOME FROM HIS EMPLOYER OF 7,38,331/ - , AGAINST WHICH IT HAD CLAIMED DEDUCTION UNDER CHAPTER VIA OF THE ACT OF 70,332/ - . IN THE RETURN OF INCOME, THE ASSESSEE CLAIMED CREDIT FOR TDS OF 19,000/ - AGAINST TO TAL TAX LIABILITY OF 74,532/ - . THE PLEA OF ASSESSEE IN THIS REGARD WAS THAT IN FORM NO.16, TDS WAS SHOWN BY THE EMPLOYER AT 19,000/ - , THE ASSESSEE PAID BALANCE SUM OF 55,530/ - AS SELF ASSESSMENT TAX. THEREAFTER, THE ASSESSEE RECEIVED REVISED FORM NO.16 FROM THE EMPLOYER, IN WHICH AGGREGATE TDS AMOUNT DEDUCTED OUT OF SALARY WAS 71,056/ - . THE ASSESSEE HAD ALREADY FILED HIS ORIGINAL RETURN OF INCOME. THEREFORE, THE ASSESSEE FILED REVISED RETURN OF INCOME. SINCE THE ORIGINAL RETURN OF INCOME WAS FILED BEYOND TIME PRESCRIBED UNDER SECTION 139(1) OF THE ACT, REVISED RETURN OF INCOME OF ASSESSEE WAS NOT ACCEPTED. THEREAFTER, THE ASSESSEE FILED AN APPLICATION FOR RECTIFICATION UNDER SECTION 154 OF THE ACT STATING THAT HIS INCOME WAS ONLY FROM SALARY AND BECAUSE OF MISTAKE OF EMPLOYER, ORIGINALLY CREDIT FOR TDS FROM SALARY WAS SHOWN AT 19,000/ - ONLY. ON THAT BASIS, THE RETURN OF INCOME WAS FILED. THEREAFTER, TDS FROM SALARY STOOD REVISED TO 71,056/ - . HENCE, THE ASSESSEE IN THE RECTIFICATION APPLICATION CLAIMED TDS FROM SALARY TO BE ALLOWED AT 71,056/ - I.E. ADDITIONAL TDS AMOUNT OF 52,056/ - . THE ASSESSEE ALSO CLAIMED REFUND OF SELF ASSESSMENT TAX PAID AT 55,530/ - . THE CLAIM OF ASSESSEE WAS REJECTED BY THE CPC STATING IT NOT TO BE ITA NO. 1867 /P U N/ 20 1 6 ANANT SHRIPAD NANAJKAR 3 A MISTAKE APPARENT FROM RECORD AS THE SAME WAS ON ACCOUNT OF FIGURES DECLARED BY THE ASSESSEE IN THE ORIGINAL RETURN OF INCOME. THE ASSESSING OFFICER DID NOT PASS ANY ORDER RECTIFYING THE ABOVE SAID MISTAKE UNDER SECTION 154 OF THE ACT. AGGRIEVED WITH THE INTIMATION SENT BY CPC, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A), WHO REJECTED THE CLAIM OF ASSESSEE. HENCE, THE PRESENT APPEAL IS FILED BY THE ASSESSEE BEFORE THE TRIBUNAL. 5. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE CLAIM OF TDS AS PER REVISED FORM NO.16 ISSUED BY THE EMPLOYER MERITS TO BE ALLOWED TO THE ASSESSEE AS IN THE ORIGINAL FORM NO.16, THE EMPLOYER HAD INCORRECTLY MENTIONED THE FIGURE OF TDS WHICH WAS DEDUCTED OUT OF SALARY. 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE ON THE OTHER HAND, OPPOSED THE SAME AND POINTED OUT THAT THE REV ISED CLAIM CANNOT BE ALLOWED IN THE REVISED RETURN OF INCOME FILED BY THE ASSESSEE. 7. ON PERUSAL OF RECORD AND AFTER HEARING BOTH THE LEARNED AUTHORIZED REPRESENTATIVES, THE ISSUE WHICH ARISES IN THE PRESENT APPEAL IS AGAINST THE CLAIM OF HIGHER TDS, WHI CH WAS DEDUCTED BY THE EMPLOYER IN THE REVISED FORM NO.16, TO BE ALLOWED TO THE ASSESSEE UNDER THE PROVISIONS OF SECTION 154 OF THE ACT. THE ASSESSEE ON RECEIPT OF ORIGINAL FORM NO.16 IN WHICH TDS AMOUNT WAS SHOWN AT 19,000/ - HAD ACCORDINGLY, DETERMINED ITS INCOME FROM SALARY AND PAID THE BALANCE TAX AS SELF ASSESSMENT TAX AND DEPOSITED ITS ORIGINAL RETURN OF INCOME. THE SAID RETURN OF INCOME WAS FILED AFTER DUE DATE FOR FURNISHING THE RETURN OF INCOME UNDER SECTION 139(1) OF THE ACT. ON A LATER DATE, THE EMPLOYER OF ASSESSEE ISSUED REVISED FORM NO.16, IN WHICH TDS DEDUCTED OUT OF SALARY STOOD AT 71,056/ - AS AGAINST 19,000/ - SHOWN IN THE ORIGINAL FORM NO.16. THE ITA NO. 1867 /P U N/ 20 1 6 ANANT SHRIPAD NANAJKAR 4 ASSESSEE POINTED OUT THAT REVISED FIGURES WERE ALSO REFLECTED IN FORM NO.26AS, WHICH WAS AVAILABLE ON INCOME - TAX PORTAL. 8. THE ISSUE WHICH ARISES IS WHE RE THE EMPLOYER IN THE FIRST ROUND HAD WRONGLY ISSUED TDS CERTIFICATE, WHICH WAS ON ITS OWN MOTION REVISED BY THE EMPLOYER AND TDS AMOUNT WAS SHOWN ON HIGHER FIGURE AND S INCE THE ASSESSEE HAD NOT CLAIMED THE SAID HIGHER FIGURE IN ITS RETURN OF INCOME, CAN THE ASSESSEE BE PRECLUDED FR OM CLAIMING THE SAME? ANSWER TO THE SAME IS NO. UNDER THE PROVISIONS OF THE ACT, WHAT HAS TO BE DETERMINED IN THE HANDS OF ASSESSEE IS THE TRUE INCOME FOR THE YEAR UNDER CONSIDERATION, TAX PAYABLE THEREON AND ALSO THE CREDIT FOR TAXES PAID IS TO BE ALL OWED ; W HERE IT IS NOT THE CASE OF WRONG CLAIM BY THE ASSESSEE ON ITS OWN MOTION, BUT IT IS CASE OF CLAIM MADE BY THE ASSESSEE ON THE INFORMATION SUPPLIED BY EMPLOYER IN FORM NO.16. THE ASSESSEE IN GOOD FAITH ALSO PAID SELF ASSESSMENT TAX I.E. BALANCE TAX DUE ON THE SALARY INCOME ON WHICH THOUGH TDS WAS DEDUCTED IN FULL BUT IN THE ORIGINAL FORM NO.16 THE AMOUNT MENTIONED WAS 19,000/ - . THEREAFTER, THE EMPLOYER ON ITS OWN MOTION ISSUED REVISED FORM NO.16, IN WHICH TDS WHICH WAS DEDUCTED OUT OF SALARY PAID TO THE ASSESSEE STOOD AT 71,056/ - . THE ENDEAVOUR OF INCOME TAX DEPARTMENT ESPECIALLY THE ASSESSING OFFICER IS TO ALLOW CREDIT OF ALL TAXES PAID BY THE ASSESSEE OR DEBIT ED FROM THE ACCOUNT OF ASSESSEE BY WAY OF TDS. THE ASSESSEE HAD IN GOOD FAITH WHEN C ONFRONTED WITH THE FACT THAT TDS DEDUCTED BY THE EMPLOYER WAS LESSER, HAD DEPOSITED BALANCE TAXES UNDER SECTION 140A OF THE ACT AS SELF ASSESSMENT TAX. IN VIEW OF THE REVISED FORM NO.16 ISSUED BY THE EMPLOYER, THE ASSESSEE HAD NOT ONLY TO GET CREDIT OF TA XES DEDUCTED AT SOURCE AT 71,056/ - AS AGAINST ORIGINAL TDS AMOUNT OF 19,000/ - BUT ALSO TO CLAIM THE REFUND ON ACCOUNT OF TAXES PAID AS SELF ASSESSMENT TAX. THUS, THE CLAIM OF ASSESSEE BY WAY OF RECTIFICATION APPLICATION UNDER SECTION ITA NO. 1867 /P U N/ 20 1 6 ANANT SHRIPAD NANAJKAR 5 154 OF THE ACT AG AINST INTIMATION ISSUED BY CPC, MERITS TO BE UPHELD. IN VIEW THEREOF, IT IS HELD THAT THE ASSESSEE CAN RAISE SUCH AN ISSUE BY WAY OF RECTIFICATION APPLICATION UNDER SECTION 154 OF THE ACT. ACCORDINGLY, THE ASSESSING OFFICER IS DIRECTED TO ALLOW THE CREDI T OF TDS OF 71,056/ - UNDER SECTION 154 OF THE ACT AND ALSO ISSUE REFUND ALONG WITH INTEREST UPTO DATE TO THE ASSESSEE, AS PER LAW. THUS, THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLOWED. 9 . IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER PR ONOUNCED ON THIS 25 TH DAY OF APRIL , 201 8 . SD/ - (SUSHMA CHOWLA) / JUDICIAL MEMBER / PUNE ; DATED : 25 TH APRIL , 201 8 . GCVSR / COP Y OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A) , PUNE - 5 , PUNE ; 4. THE PR. CIT , PUNE - 4 , PUNE ; 5. 6. , , , - / DR SMC , ITAT, PUNE; / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE