CATVITION LIMITED, Delhi V. ACIT, Circle-4(2), Delhi

ITA 2271/DEL/2022

AI Insights

The case involves Catvision Ltd., the appellant, contesting the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, which arose from an assessment order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2018-19. The primary contention was regarding the non-credit of dividend distribution tax amounting to Rs.11,10,225/- paid for the Financial Year 2017-18, where the challan erroneously mentioned Assessment Year 2017-18 instead of 2018-19. The CIT(A) declined to adjust the payment due to the clerical error in the challan, leading to the appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121528 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 08-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 15-09-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.2271/DEL/2022 Assessment Year 2018-19 Catvision Ltd. H-17/202 Second Floor Main Vikas Marg Laxmi Nagar New Delhi. Vs. ACIT, Circle-4(2), Delhi. TAN/PAN: AAACC0249A (Appellant) (Respondent) Appellant by: Shri R.K. Gaur, CA Respondent by: Shri Sanjay Kumar Yadav, Sr.DR Date of hearing: 09 05 2023 Date of pronouncement: 23 05 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capti oned app eal has b ee n f il ed b y the A sse ssee a gainst the or der of the Com miss ioner o f Income Ta x (A ppeals )-N FA C, D elhi (‘ C IT (A )’ in s h ort ) da ted 27. 07.2 022 aris ing from the assess me nt orde r dat ed 16. 04. 20 21 pass ed by th e Assessing O fficer (A O) unde r Sect ion 143(3) of t he Inc ome T ax A ct, 19 61 (t he Act ) co ncerning AY 2018-1 9. 2. The grounds of appeal raised by the assessee read as under: “1. The learned Assessing Officer has erred on facts and in law by raising a demand of Rs.15,87,620/- towards dividend distribution tax under section 115O for which the requisite payment was made on time and proof of payment was submited. 2. On the facts and circumstances of case and in law, ld . CIT(Appeal) through NFAC has erred in not allowing the payment of Dividend I.T.A. No.2271/Del/2022 2 Distribution Tax u/s. 115O on the pretest of clearical error mentioned in the challan.” 3. When the matter was called for hearing, the assessee submitted that the demand has been raised by the Assessing Officer towards dividend distribution tax amounting to Rs.15,87,620/- for Assessment Year 2018-19 in question. In this context, the assessee submitted that the Assessing Officer has not given the credit towards dividend distribution tax paid to the extent of Rs.11,10,225/-. It is submitted on behalf of the assessee that the dividend distribution tax payable under Section 115O on dividend declared during the Financial Year 2017-18 was paid on 13.06.2017. However while making payment of such amount, the assessment year was wrongly mentioned in the challan is Assessment Year 2017-18 instead of correct Assessment Year 2018- 19. The assessee submitted that all these facts were placed before the CIT(A) but however the CIT(A) strictly went by the details put in the challan reflecting Assessment Year 2017-18 and therefore, declined to give any credit for payment claimed against the challan in respect of Assessment Year 2018- 19 in question. In the matter, the ld. counsel for the assessee submitted that the taxes to the extent of Rs.11,10,225/- has been duly paid to the coffers of the Government albeit mentioning incorrect assessment year in the challan and therefore, credit should be given for such payments in relation to Assessment Year 2018-19. The mistake committed by the Assessee towards incorrect mentioning of assessment year should be corrected by the Appellate Authorities. 4. On being inquired by the Bench, the ld. counsel submitted that the credit for such challan has not been taken in any other assessment year and the assessee is willing to file the affidavit and the indemnity bond in this regard and also such other declaration as may be called upon by the Revenue to assign credit in correct AY 2018-19. I.T.A. No.2271/Del/2022 3 5. The copy of e-receipt for e-tax payment is reproduced hereunder: 6. In the light of the submissions made on behalf of the assessee, the matter is restored back to the file of the Assessing Officer to provide one more opportunity to Assessee and for re-examination of the issue by the Assessing Officer . The Assessing Officer shall grant credit for taxes paid, in accordance with provisions of law, where the authority concerned is duly satisfied about appropriate recovery of tax and after taking due safeguards on any possible I.T.A. No.2271/Del/2022 4 misuse of the e-challan purportedly bearing incorrect assessment year. It shall be open to the Assessee to place relevant facts and poistion of law before the Assessing Officer to enable him to perform his quasi judicial function in accordance with law. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 23/05/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /05/2023 Prabhat