Mukesh Padmachand Sogani, Pune V. Assistant Director of Income-Tax, CPC, , Bengaluru

ITA 30/PUN/2022

AI Insights

The case involves Mukesh Padmachand Sogani, the appellant, who contested a demand raised by the Income Tax Department due to a mismatch in the TDS amount claimed in his return and the amount reflected in form No.26AS. The discrepancy arose because his employer, M/s. Earth Water Limited, deducted TDS but failed to deposit it. The initial appeal to the CIT(A) was unsuccessful, leading to this appeal before the Income Tax Appellate Tribunal. The Tribunal, referencing a similar case from the previous assessment year, ruled in favor of the appellant, allowing the TDS benefit claimed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137706 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-02-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 09-01-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपीऱ सं. / ITA. No.30/PUN/2022 निर्धारण वषा / Assessment Year : 2020-21 Mukesh Padmachand Sogani Row House No.A-211, Five Gardens, Aundh Annexe, Kalewadi Phata, Pune – 411017 PAN: ACOPS8404N Vs. ACIT, Circle 8, Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dated 09.12.2021 passed by the National Faceless Appeal Centre (NFAC), Delhi, in relation to assessment year 2020-21. 2. The assessee is aggrieved by the demand of Rs.2,86,080 raised on the processing of the return u/s 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) because of non- matching of TDS amounting to Rs.2,50,449. Assessee by Shri Dinesh Ramesh Gulabani Revenue by Shri Ramnath P Murkunde Date of hearing 14-02-2023 Date of pronouncement 14-02-2023 ITA No.30/PUN/2022 Mukesh Padmachand Sogani 2 3. We have heard the rival contentions and perused the record. It is seen that the assessee was working at material time with M/s. Earth Water Limited. The employer deducted tax at source and issued pay slips to the assessee towards the deduction. However, the amount of tax deducted at source was not deposited. Because of such a position, there was mismatch in the amount of TDS claimed by the assessee and that portrayed in form No.26AS. The return was processed raising demand to the tune of above extent. The assessee’s appeal was not allowed by the CIT(A). 4. Having heard the rival contentions and perused the material on record, it is seen that similar issue cropped up before the Tribunal in the case of assessee for the immediately preceding assessment year 2019-20. An order has been passed by the Tribunal on 30.01.2023 holding that the benefit of such tax deducted at source has to be allowed in the intimation under section 143(1) of the Act notwithstanding the fact that it was not deposited. Both the sides are in agreement that the facts and circumstances of this year are mutatis mutandis similar to those of immediately preceding assessment year 2019-20. Following the precedent, we overturn the impugned order and direct to grant the ITA No.30/PUN/2022 Mukesh Padmachand Sogani 3 benefit of tax deducted at source by the employer from the assessee. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 14 th February, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 14 th February, 2023 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. DR, ITAT, ‘A’ Bench, Pune Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune ITA No.30/PUN/2022 Mukesh Padmachand Sogani 4 Date 1. Draft dictated on 14-02-2023 Sr.PS 2. Draft placed before author 14-02-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *