Shri Chandulal Bhaijibhai Patel, Ahmedabad V. TheAsstt../Deputy Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

ITA 579/AHD/2022

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The case revolves around a dispute concerning the incorrect credit of TDS (Tax Deducted at Source) by the Income Tax Department, which led to an erroneous demand for additional tax from the assessee, Shri Chandulal B. Patel, for the Assessment Year 2020-21. The assessee had filed his income tax return showing a total income of Rs.2,72,97,390 and claimed a refund after accounting for TDS and advance tax paid. However, the initial intimation under Section 143(1)(a) of the Income Tax Act, 1961, resulted in a demand for additional tax, which the assessee contested. The Tribunal's decision rectified the crediting error and removed the additional tax demand, aligning the records with the actual TDS and tax paid as per the 26AS report.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124727 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-05-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 27-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 154; 143(1); 194A; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./ I. T. A. No . 579/Ahd/20 22 ( नधा रण वष / A ss es sment Year : 2020-21) Sh r i C h a nd u la l B h aij ib ha i Pat e l 21 4/5 , K h ya ti C o m ple x, O p p: M ith ak ha li G a rd e n , Ell is br id ge , A h me d a ba d - 38 00 0 6 बनाम/ Vs . T h e A s s t t . / De pu t y C o m m is s io n e r of I nc o m e- t a x C ir c l e – 2 ( 1 ) ( 1 ) , A a yk a r B h av a n, V e j al pu r , A h m e da b ad थायी लेखा सं./जीआइआर सं./P A N/ G I R N o . : A A Y P P 4 6 6 3 N (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri M. K. Patel, A.R. यथ क ओर से/Respondent by : Shri Dileep Kumar, Sr. D.R. स ु नवाई क तार ख / D a t e o f H e a r i ng 11/05/2023 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 26/05/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 03.12.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi arising out of the order dated 19.10.2022 passed by the CPC, Bangalore under section 154 r.w.s. 143(1) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2020-21. ITA No. 579/Ahd/2022 (Shri Chandulal B. Patel) A.Y.– 2020-21 - 2 - 2. The assessee, an individual, filed its return of income showing total income of Rs.2,72,97,390/-. The assessee filed return of income showing total income of Rs.2,72,97,390/- and paid tax in the following manner: Tax payable Rs.1,04,60,018 Less: TDS from salary 66,69,512 TDS from interest 8,69,006 Adv. tax paid 38,00,000/- Rs.1,13,38,518 Balance refundable Rs. 8,78,500 Less: Interest u/s. 234C Rs. 27,170 NET REFUNDABLE Rs. 8,51,330 3. According to the assesse, the refund due to him is of Rs.8,51,330/-. However, an intimation under Section 143(1)(a) of the Act accepting the total income of Rs.2,72,97,390/- raising a further demand of Rs.10,30,820/- was received by the assessee. 4. The assessee submitted the above calculation in response to the intimation alongwith the copy of the 26AS report. In fact, it was further pointed out by the assessee that the assessee claimed credit of tax paid as above is also reflecting in the 26AS report. The credit of tax paid showing therein is as under: Corporation Bank Gandhinagar 194A interest Rs.51255 Yashnand Engineers and Contractors Pvt. Ltd. 194A interest Rs.755951 State Bank of India 194I(b)Rent Rs.61800 TDS from Salary Rs.6669512 Total TDS Rs.7538518 Adv. tax paid Rs.3800000 Total tax paid and credit claimed Rs.11338518 5. In that view of the matter, the case of the assessee that since as per 26AS report, the total TDS of Rs.75,38,518/- is also tallying with the return of income filed by the assessee, there was a mistake apparent in giving credit of ITA No. 579/Ahd/2022 (Shri Chandulal B. Patel) A.Y.– 2020-21 - 3 - TDS of Rs.58,86,783/- instead of Rs.75,38,518/-. The short credit is of Rs.16,51,735/- was given to the assessee. The assessee further requested to rectify the same and cancel the demand and also further issuance of refund of Rs.8,51,330/- along with interest up to the date of rectification of the order under Section 154 of the Act. However, the order of rectification was passed rejecting the application filed under Section 154 of the Act., though TDS claimed Rs.75,38,518/- and TDS shown in 26AS report of Rs.75,38,518/-. Needless to mention that both the figures are matching with the income offered. The demand raised by the CPC, Bengaluru of Rs.10,30,820/- even though such TDS was duly deducted and credited in the Government and further reflected in 26AS Report. The same has further upheld by the Ld. CIT(A) which is under challenge before us. 6. In fact, the Ld. CIT(A) rejected the TDS claim of the assessee with the following observations: “4.2. As per the provisions of Section 199 and Rule 37BA(2), credit for TDS deducted can be considered in the hands of the appellant only on the basis of details as furnished by the deductor as mandated under section 199 and rule 37BA(1). If there is any mismatch in the TDS claim as per the return vis a vis the TDS statement filed by the deductor, the same can be rectified by getting appropriate correction statement filed by the deductor. Appellant is at liberty to seek appropriate remedy thereafter.” 7. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record. 8. It is appearing on the records itself that the assessee has paid total taxes and credit claimed of Rs.1,13,38,518/- which is also reflected in the 26AS Report appearing at Page 10 of the paper book filed before us, which is further ITA No. 579/Ahd/2022 (Shri Chandulal B. Patel) A.Y.– 2020-21 - 4 - tallying with the Income Tax return for the year under consideration filed by the assessee at Page 9 of the paper book. The break up whereof has already been discussed by us as above. The Ld. AO without considering it passed order under Section 154 of the Act on 22.06.2022 and not given credit of TDS as claimed though the said amount is reflecting in 26AS Report, which was further confirmed by the Ld. CIT(A) wrongly. In that view of the matter, in our considered opinion, the assessee is entitled to credit of TDS as claimed. The demand of Rs.10,38,820/- is hereby deleted. The Ld. AO is further directed to give relief to the assessee in terms of the observation made hereinabove. 9. In the result, assessee’s appeal is allowed. This Order pronounced on 26/05/2023 Sd/- Sd/- (ANNAPURNA GUPTA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 26/05/2023 True Copy S. K. SINHA आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं%धत आयकर आय ु 'त / Concerned CIT 4. आयकर आय ु 'त(अपील) / The CIT(A)- 5. *वभागीय -त-न%ध, आयकर अपील य अ%धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड3 फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील$य अ%धकरण, अहमदाबाद / ITAT, Ahmedabad