LATE RUSSI DINSHAW BAHADURJI BY HIS LEGAL HEIR, MUMBAI V. INCOME TAX OFFICER -19(3) (1) , MUMBAI

ITA 2575/MUM/2022

AI Insights

The case involves the legal heir of Late Russi Dinshaw Bahadurji, represented by M/s. Kalyaniwala & Mistry LLP, appealing against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre. The appeal challenged the denial of TDS credit amounting to Rs.1,77,780 for the Assessment Year 2022-23. The appellant, acting as the executor, had filed the income return for the deceased, declaring a total income and claiming a corresponding TDS credit. The Assessing Officer initially denied the full TDS credit, leading to the appeal. The Tribunal's decision remanded the issue back to the Assessing Officer for verification of the TDS credit as per Form 26AS.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125892 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 05-03-2023
• Assessment Year: 2022-2023
• Appeal Filed On: 06-10-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; FORM 26AS
• Section: 143(1); 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM I TA N o. 257 5/ M u m / 20 22 ( A s s e ss me nt Y ea r: 20 2 2- 23 ) Late Russi Dinshaw Bahadurji by his legal heir M/s. Kalyaniwala & Mistry LLP Esplanade House, 2 nd Floor, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 V s. ITO-19(3)(1) Mumbai P A N / G I R N o. AA CP B 4 74 0 N (Appellant) : (Respondent) Assessee by : Shri M M Golvala Revenue by : Smt. Mahita Nair D a te o f H e a r i n g : 06.03.2023 D ate of P ro n ou n ce me n t : 02.06.2023 O R D E R Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short), National Faceless Appeal Centre (‘NFAC’ for short) passed u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2022-23. 2. The assessee has challenged the grounds of denying TDS credit to the extent of Rs.1,77,780/-. 3. Briefly stated the facts of the case are that the appellant being the executor filed the return of income of the assessee (deceased) on 26.07.2022, declaring total income at 2 ITA No. 2 5 7 5 / M u m / 2 0 2 2 ( A . Y . 2 0 2 2 - 2 3 ) Late Russi Dinshaw Bahadurji by his legal heir vs. ITO Rs.1,19,68,096/-. The return was processed u/s. 143(1) of the Act and the CPC /ld. Assessing Officer ('A.O.' for short) raised a demand of Rs.1,77,780/- which is due to short grant of TDS credit. 4. Aggrieved the assessee was in appeal before the ld. CIT(A) who directed the A.O. to verify Form 26AS and to give credit of the prepaid taxes after verification of 26AS. 5. The assessee is in appeal before us, challenging the order of the ld. CIT(A). 6. We have heard the rival submissions and perused the materials on record. It is observed that the assessee was the Trustee and the settler of the ‘Deed of settlement of K D Bahadurji’ and on the demise of his brother Shri K. D. Bahadurji, the original life tenant, his wife Smt. Biku Bahadurji became the life tenant and upon her demise, the trust reverted back to the assessee. The entire income of ‘Deed of settlement of K D Bahadurji’ amounting to Rs.17,77,840/- was offered to tax in the hands of the assessee and the corresponding TDS credit of Rs.1,77,780/- was claimed by the assessee in his return of income as per the provisions of section 199 of the Act. The assessee contended that he had declared Nil return for the Trust dated 26.07.2022 for the reason that there was a specific provision in the Form for transfer of TDS and that in the form it was declared that TDS credit was transferred to the assessee along with the PAN number. The assessee further contended that the assessee had made all the disclosures with respect to TDS pertaining to the assessee as well as the ‘Deed of settlement of K D Bahadurji’. The CPC/Assessing Officer ('A.O.' for short) had denied the short granting TDS credit on the 3 ITA No. 2 5 7 5 / M u m / 2 0 2 2 ( A . Y . 2 0 2 2 - 2 3 ) Late Russi Dinshaw Bahadurji by his legal heir vs. ITO above circumstances which the assessee was entitled to as per section 199 read with Rule 37BA of the I. T. Rules. 7. The first appellate authority has directed the ld. A.O. to verify Form 26AS filed by the assessee and thereby give credit of the prepaid taxes subject to verification of the same. We find that the ld. CIT(A) has given relief to the assessee by remanding the issue back to the A.O. for the reason that the ld. CIT(A) does not have access to the assessee’s Form 26AS and has rather directed the A.O. to give credit after due verification. We, therefore, direct the A.O. to give TDS credit for the year under consideration within 90 days from the date of this order. 8. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 02.06.2023. Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 02.06.2023 Roshani , Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai