HMM Infra Limited, Chandigarh V. ACIT, Circle - 3(1), Chandigarh

ITA 520/CHANDI/2022

AI Insights

The case involves M/s HMM Infra Limited appealing against the order of the CIT(A) which denied them the credit for TDS of Rs. 64,00,000 for the assessment year 2015-16. The TDS was deducted by M/s IL & FS Engineering and Construction Company Ltd. during the assessment year 2014-15. The assessee argued that the income related to this TDS was disclosed in the return of income for the assessment year 2015-16, and thus, they were entitled to the TDS credit in the same year. The CIT(A) rejected this claim, leading to the present appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127806 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-01-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 16-06-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 32; 201; 64; 72; 20

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , ‘ A ’ , C H A N D I G A R H B E F O R E SH R I A . D . J A I N , V I C E P R E S I D E N T & SH R I V I K R A M S I N G H Y A D A V , A C C O U N T A N T M E M B E R आयकर अपील सं./ ITA No. 5 2 0 / C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 5 - 1 6 M/s HMM Infra Limited, SCO 80-81, 3 rd Floor, Sector 17-C, Chandigarh Vs. बनाम The ACIT, Circle 3(1), Chandigarh थायी लेखा सं./PAN NO: AAACH4280L अपीलाथ /Appellant यथ /Respondent Hearing through video Conferencing नधा रती क ओर से/Assessee by : Sh. T.N. Singla, CA राज व क ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr.DR स ु नवाई क तार%ख/Date of Hearing : 09.01.2023 उदघोषणा क तार%ख/Date of Pronouncement : 2023 आदेश/Order Per A.D. Jain, Vice President: Th i s i s a ss es se e ’ s ap p e a l f or a s se s s m e nt y e a r 20 15 -1 6 a g a i n s t t h e CI T( A )’ s or d e r da t ed 20. 0 5. 20 22. 2. Th e f ol lo w i ng g ro u nd s h av e b e e n t a ke n: - 1. T ha t t he o r de r o f l d. C IT (A ) i s b a d a n d a ga i n s t t h e f ac t s a nd l a w. 2. T ha t t h e L d. C IT ( A ) h as w ro n gl y di d no t a l l ow T D S c re di t o f R s. 64 , 00, 0 0 0/ - . 3. Wh et h e r i nt e re st u / s 2 34 b e c h a rg ed on a m ou n t o f T D S n ot al l ow e d. 2 ITA No. 520/Chd/2022 – M/s HMM Infra Limited, Chandigarh 4. Wh et h e r th e ap p e l l an t s ho u l d b e a l l o w e d i n t e re st u/ s 2 44 / 24 4 A on re f u n d be c om i ng d u e af t e r al l ow in g c r ed i t o f T D S o f Rs. 64 , 00 , 0 00 / - . 5. Wh et h e r t h e a p pe ll a nt sh ou ld be al l o we d c r e d i t o f T D S a c co rd i n g to re l e v an t i n c o m e d e c l a re d d u ri ng v ar i o u s y e a rs . (t h is g r o u nd mi s t a k e n l y m en ti o ne d a s g r o un d N o. 6 i ns t e ad o f g ro u n d N o . 5) 3. V i d e o r d e r d a t e d 15 . 1 2. 2 0 1 7 , t he A s se s si ng O ff i ce r (A O ) m ad e di s a l lo w a n c e o f Rs . 8 , 38, 2 7 5/ - , i. e . , di sa l l o w an ce o f R s. 6 , 87, 4 16 / - o n a cc o u nt o f b e l a t ed r e mi t t a n c e o f E mp l o ye e s ’ Co nt ri bu ti on t o P F a nd E S I a n d o f Rs. 1 , 50, 8 0 9/ - o n a c co un t o f t e l e p ho ne e xp e n se s t r e a t e d a s pe r so na l in na t u re . 4. In i t s a p p e a l b e fo re t h e l d. CI T( A ), t he a ss e s see r ai se d a n a dd i t i o na l g ro un d, th a t t he A O h a d w r on g l y d i s al l owe d c r e di t o f T D S o f Rs. 6 4, 00 , 0 00 /- . 5. By v i rt ue o f th e i mp ug n e d o r de r , t h e ld . C IT (A ) r e j e c t e d t h i s c l a i m o f t h e a s se s s ee , ob s er vi ng th at t he a s se ss e e ha d ma d e t h e c l ai m o f T D S cr e d i t o f R s. 64 , 00, 0 00 / - i n t h e A sse s s m e n t y ear 2 01 5 -1 6 on th e ba s i s o f pr o for ma i nv o i c e o f Rs. 3 2 c r o re s fo r sa le / w or k to be ex pe ct e d i n t he u p c o mi n g y e ar s w it h M / s I L & F S En gi ne er i ng & Co n s t r uc t i on L td . ; t ha t , h ow e ve r, t h e TD S w a s d ed uc t ed i n a ss e ss m en t ye a r 20 14 - 1 5 ; a nd t h a t s i n c e t he a ss e s se e fol l o w e d t h e me rc a nt i l e m e t h o d o f 3 ITA No. 520/Chd/2022 – M/s HMM Infra Limited, Chandigarh a cc o u nt i n g, th e a d di t i o na l g r o u n d ra i se d ha d n o me ri t a nd i t w as be i n g re j e c t e d. 6. A g gr i e v e d , t h e a ss e sse e i s i n a pp e a l b e f or e u s. 7. Th e l d. C ou n s e l fo r t h e a s se ss e e h a s co nt en de d th a t t he L d. CI T( A ) ha s e rr ed i n n ot a l lo w i ng TD S cr e d i t o f Rs. 6 4, 00 , 00 0 / - , w h ic h T D S w as d e d u c t ed by t h e d e d u c to r, M / s I L & F S E ng i ne e r i n g a nd Co ns t ru ct i o n C o m p a ny L t d. dur i n g a s s e ss me nt ye a r 2 01 4- 15, t he i n c o m e o f w h i c h w a s di sc l o se d in a ss e s s m en t ye a r 20 15 - 1 6 , a n d w h ic h c re di t o f T D S of R s. 6 4, 00 , 0 00 / - w a s al so c l a i m e d i n a ss es s ment y e a r 20 1 5- 16 . 8. P er C o n t r a , t h e L d. D R h as su b mi t te d t ha t t he T DS w a s d e du ct e d i n as se ss m e nt y e a r 2 0 14 -1 5 , t h a t h o w e ve r, t he a ss e sse e c la i me d i t i n a ss e s s me n t y e a r 20 1 5- 1 6, i ns t ea d o f i n a ss e s s m en t ye a r 2 0 1 4- 1 5; t h a t i n t he M e rc an t i l e S y st e m o f A c c o u nt i n g, fo l l o w ed b y th e a sse ss ee , t h e T D S c a n b e cl a i me d fo r c r e d i t o nl y i n as s es s m e n t year 2 01 4 -1 5, an d no t i n a n y o th er a s se ss me nt y e a r ; an d t h a t a s s u c h , t h ere i s n o e r r or i n t h e or d e r o f t h e L d. C I T (A ) , w h i c h or d e r b e u p he l d, o n d is m i ss i n g t h e a ss e s se e ’ s a p p e a l a s ha v i n g no m er i t. 9. We h a v e h ea r d th e pa r t i e s a n d ha v e p e r u se d t he ma t er i a l on re c or d. I t i s se e n t ha t a s p e r t h e A s se sse e’ s F o r m 2 6A S f or a sse ss me n t ye a r 2 0 14 -1 5 , (A s s e ss e e ’s P a p e r B oo k pa ge s 58 t o 70, a t pa ge 6 4, S r. N o. 19 ) a nd t h e a c co u nt o f th e d e d u c t or M / s IL & F S E n gi n ee ri ng & 4 ITA No. 520/Chd/2022 – M/s HMM Infra Limited, Chandigarh Co ns t ru ct i o n C o . Lt d . in t he b oo k s o f t he a ss e s se e fo r a s se ss m e nt ye a r 20 15 - 16 (A ss e s se e ’ s p a p e r bo o k pa g e s 7 2 t o 7 3, a t Sr. N o. 7 2, 4 t h e nt ry ), t h e TD S o f Rs. 6 4, 0 0, 0 0 0 / -w a s d ep os i t e d by t h e d u d u c t o r on 3. 1 0. 20 14, in a s se ss me nt y ea r 20 1 5 - 16. Th e in co me re l a t in g t o su c h T D S w as d i s cl os e d b y t h e a s se s s e e i n t he re t u rn o f i n c o me fo r a ss e s s me n t ye a r 2 0 15- 16 . A s p er t h e S c he d u l e T D S 1, i . e . , D e ta i l s o f T ax D e d u c t e d a t S o ur c e ( T D S ) o n I n c o me [ a s pe r F o r m 1 6 A ] ( as s e sse e ’ s pa p e r b oo k p a g e 3 2, S r . N o. 2 3, Co lu mn s 7 a n d 8) , T DS of t h e c u r r e n t fi n an ci a l ye a r w as sh o w n a s R s. 64, 0 0, 00 0/ -, c l a i m ed for a s se ss me n t ye a r 2 0 1 5- 16 , a s t h e c or re s po nd i n g i n co me w a s b ei ng o ff er ed for t a x t ha t ye a r. Th e i n c o me fo r a s se ss me n t ye ar s 2 0 15 -1 6 t o 201 8- 1 9 w as sh o w n a s sa l e s t o t h e d e d u ct or , M / s I L & F S E n gi ne er i n g & Co ns t ru ct i o n C o. L t d . ( A ss e s se e ’ s p ap er b oo k pa g e s 7 1 a n d 72 t o 7 3 ), i n t ho se ye a r s. Th e A sse ss e e ne i t he r c l a i me d T D S o f Rs. 6 4 , 0 0, 00 0 / - i n it s re t ur n o f i n c o m e fo r A . Y . 201 4- 15, n o r w a s it de c l are d a s pa r t o f gr os s re c e i p t s a p pe a r i n g t he a s se ss e e’ s P r o f i t & L o ss A c co un t for a s se ss me nt ye a r 20 1 4 -1 5, r e fl ec t e d i n F or m 26 A S of a s se s s me nt y e ar 2 01 4- 15 (A s se ss e e ’ s p a p e r b o o k p ag e s 58 t o 70 ). E vi d en tl y, i t d i d n o t d e c l ar e t he gr o s s r e ce i pt s o f R s. 32 c r o re s a s r e v e n u e r e cei pt s, or i nc o m e i n a ss e s s me n t ye a r 2 0 14 - 15 . 10 . Th e c r e d i t fo r t he TD S ha s w r o ng l y n ot be e n a l lo w e d t o t h e a ss e s se e for a ny a s se s s me n t ye ar . T hi s, d e sp i t e t h e se tt l e d t h a t p os i t i o n t ha t w he r e t ax ha s b e e n d e d u c t ed a t s o ur c e a n d p a id t o t h e c r e d i t o f t h e 5 ITA No. 520/Chd/2022 – M/s HMM Infra Limited, Chandigarh Ce nt r al G o ve r n me nt , a n d t h e i n c o m e i s a ss e s sa bl e over a n u m be r o f ye a rs, c r e d i t o f T D S sha l l be a l l ow e d a c r o ss t ho se y ea r s, i n t h e sa m e pr o p o rt i o n i n w h i c h t h e i n c o m e i s a c c r ue d o r a s se ssa b l e t o t a x. 11 . In v i ew o f t h e a b o ve , fi n d i n g th e g ri e va nc e o f t h e a ss es see t o be j us t i fi e d, th e sa me i s a c ce p t e d. T he o r de r u n de r a pp e a l i s re v e rs e d . T h e A O i s di r e c t ed t o g i ve cr ed i t o f T D S o f Rs. 6 4, 00 , 000 / - t o t h e a sse ss e e , fo r a ss e s s me n t y ea r 2 015 -1 6 . In t h e re s u l t , t he ap pe a l i s a l l o w e d . O r de r p ro n o u n c e d on 3 0. 01 . 2 02 3. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 30.01.2023 “आर.के .” आदेश क त,ल-प अ.े-षत / Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु 2त/ CIT 4. आयकर आय ु 2त (अपील)/ The CIT(A) 5. -वभागीय त न7ध, आयकर अपील%य आ7धकरण, च9डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar