Rainbow Promotors P.Ltd, New Delhi V. ITO, Ward 21(1), New Delhi

ITA 1906/DEL/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9894 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-11-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 25-06-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AJAY BHAGWANI
• Section: 2; 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1906/DEL/2023 Assessment Year 2018-19 Rainbow Promotors P. Ltd., M-11, Middle Circle, Connaught Circus, New Delhi. Vs. ITO, Ward-21(1), New Delhi. TAN/PAN: AAACR5368R (Appellant) (Respondent) Appellant by: Shri Ajay Bhagwani, CA Respondent by: Shri Om Prakash, Sr.DR Date of hearing: 23 11 2023 Date of pronouncement: 23 11 2023 O R D E R PER PRADIP KUMAR KEDIA-A.M. : T he capt ione d a ppeal has bee n file d by t he assess ee a gainst the order of t he C o mmi ss ione r of Income Tax (A ppeals), National Facel ess A ppeal Cent re (‘ CIT (A )’ in short) dated 27. 04. 20 23 ar isi ng from th e assess ment order da ted 08. 02.2 021 pa s sed b y the A ssessi ng O ff ic er (A O ) unde r Secti on 143(3) of the Income Ta x A ct, 1961 ( the A ct) conce rni ng A Y 2018 -19. 2. T he ld. counse l for the as sessee submi ts tha t as per the appea l me mo, the assesse e seeks rem ed y against t he de nial of T DS cred it of R s.80, 94, 86 9/- in th e A ssess men t Y e ar 2018-19 in que st ion. T he as se ssee, in s hort, seeks credit for T D S n ot ref lec ted in For m 26A S f or A Y 201 8-19 b ut is r ef lecte d in A Y 2019-2 0. T o suppo rt such c lai m, the ld. cou nsel submi ts tha t the ass essee sol d I.T.A. No.1906/Del/2023 2 a land pa rc el for Rs. 1, 61, 8 9, 73, 826/- t o purc has er na mel y, G odrej Real Val ue D eve lopers P vt. Lt d. on 05. 07. 201 7. A s per the sale deed, annexed in t he p ape r book, t he sale how ever was ma de on the bas is of defer re d consi de ra tion w here 50% of considerati on w as rece ived in F. Y . 2017-18 a nd a c cordingl y the s el le r ded ucted TD S thereon to t he e xtent of c ons i dera tion of R s. 80, 94, 86 9/- as re fl ec ted in the fo rm 26A S. T he sell er pai d t he r emai ning 50% of consi derati on i n F. Y . 2017-18 rele vant to A sses s ment Y ear 201 8- 19 a nd deduc ted bal an ce TD S of Rs. 80, 94, 869/- in next yea r. Thus, i n aggregate, the pa yme nt of c ons iderat i on was s pread ove r two fina nc ia l years and T DS w as al so cred ited i n part i n pro porti on t o pa yme nt in tw o di ffer ent ass ess ment ye ars i. e. AY 2018-19 a nd A Y 2019- 20 equal l y. The assess ee has cla i med the enti re s al e c ons i de ra ti on i n the Fi nan cia l Y ea r 2017-18 rele vant to A ssess me nt Y ear 20 18-19 and cla i me d e nt i re cred it for TD S of Rs. 1, 61, 89, 738/- in t er ms of S ec ti on 19 9 of the A ct. T he R evenue has denied the cl ai m of TD S of R s. 80, 94, 869/ - not cred ite d t o Central G ov t. on b alance 50 % s ale c ons ide rati on for w hich c redit w as recei ve d by Cent ral G ovt. in t he Assess me nt Y e ar 2019- 20. The a foresa id cred it has dul y refl ect ed in for m 26AS r elevant t o A ssess me nt Y ea r 2019-2 0 but how ever the assess ee has not cla imed a ny T DS credit in tha t yea r as it has alread y clai med s uch cred it i n the Ass ess ment Y ea r 20 18-19 i n quest io n. The l d. counse l seeks re li ef b y w a y of f ul l cre dit of T DS tow ar ds entir e sale c onsi de ra ti on ins tead of part cons iderat i on paid in the subs eque nt asse ss me nt yea r i n acco rdance w ith Section 199 r.w . Rule 37BA (3) of Income T ax R ules, 1963. 3. T he TD S credi t has bee n stat ed to be re fl ec ted in A ssess ment Y ear 2019-20 whereas the assess ee s eeks c lai m in A Y 2018-19 in I.T.A. No.1906/Del/2023 3 que st ion ow in g t o exec ut ion of s al e dee d during th e yea r and decla rati on of cor res ponding i ncome rega rdless of de fe rment of pa yme nt of sa le considera tio n and de duc tion of T DS there on. The TD S as stated to be deduc ted i. e. 50% in A ssess ment Y ear 2018- 19 and re ma i ni ng 50% i n A ssess ment Y ea r 2019-20. I n the l ight of the s ubmissi ons made o n behal f of the assess ee a nd ha vi ng regard to t he dec is io ns of the Co -ord in at e Bench in the c ase of M /s. Mahesh So ftware S ys tems Pvt. L td. vs. A CIT in ITA N o. 1288 /PU N /2017 o rde r dated 20. 09.2018 and Sanj eev Raj e ndr a Pundi t vs. AC IT i n ITA No. 3004 & 3005 /M um/2022 or der da ted 24. 01.2013, I fi nd mer it i n the pl ea of t he asses see. T he reve nue has not de mo ns t rated an y preju dice to i t b y s uch claim of the assessee. This be ing so, t he clai m o f the assesse e dese rves accept anc e. 4. T he A O is di rec ted t o gr an t c re di t of T D S amounti ng to Rs. 80, 94,869/- re fl ected in F or m 2 6A S i n AY 2019-20 and ensure that the asse ssee does no t c lai m t he cre dit yet agai n of the sa me amount in Asses s me nt Y ear 2 019- 20 or i n an y o the r assess ment ye ars. 5. In the res ul t, the appeal of t he asses see is allow e d. Order was pronounced and dictated in the open Court on 23/11/2023 Sd/- [PRADIP KUMAR KEDIA] ACCOUNTANT MEMBER DATED: /11/2023 Prabhat Copy forwarded to: 1. Appellant