Manab Seva Sansthan , Kolkata V. ITO, Wd-1(4), Exempt, Kolkata. , Kolkata

ITA 593/KOL/2023

AI Insights

The case involves Manav Seva Sansthan, an appellant, contesting the non-acknowledgment of a TDS credit of Rs. 55,996/- by the CPC, Bengaluru, in the intimation under section 143(1) for the assessment year 2021-22. The TDS was deducted by various banks on interest income, which was also reported in the income tax return. Despite these entries being reflected in Form 26AS and the income being declared, the CPC did not allow the TDS credit in their intimation. The appellant's rectification requests were also denied without explanation. The CIT(A) dismissed the appeal, suggesting it be dealt with in the appeal against the order under section 154, which was also against the non-allowance of the TDS credit. The Tribunal, after reviewing the documents and hearing the arguments, decided in favor of the appellant, allowing the TDS credit.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124630 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-07-2023
• Assessment Year: 2021-2022
• Appeal Filed On: 11-06-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; TDS; FORM 26AS
• Section: 154; 143(1); 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.593/Kol/2023 Assessment Year: 2021-22 Manav Seva Sansthan Unit No. 1501, 15 th Floor, Diamond Heritage Building, 16, Strand Road, Kolkata- 700001. (PAN: AABTM7707M) Vs. Income-tax Officer, Ward- 1(4), Exempt, Kolkata. (Appellant) (Respondent) Present for: Appellant by : Shri Sunil Surana, Advocate Respondent by : Shri B.K. Singh, JCIT (Sr.DR) Date of Hearing : 25.07.2023 Date of Pronouncement : 09.08.2023 ORDER PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2023-24/1052328868(1) dated 25.04.2023 passed against intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 17.09.2022 for AY 2021-22. 2. Short point involved in the present appeal is in respect of claim of TDS credit of Rs.55,996/- which is reflected in Form 26AS and corresponding income has already been offered for taxation in the return of income, for which CPC, Bengaluru while processing the return u/s. 143(1), has not given the credit for the same. 2 ITA No.593/Kol/2023 Manav Seva Sansthan AY 2021-22 3. Brief facts of the case are that assessee filed its return of income u/s 139(1) on 18.01.2022 reporting total income at Rs. NIL and claimed the TDS credit of Rs.55,996/-. Return was duly processed u/s 143(1) and an intimation was issued on 17.09.2022 wherein the TDS credit of Rs. 55,996/- which was claimed in ITR was not allowed by the CPC without any reason when the same was duly reflected In Form 26AS and corresponding income has already been offered for taxation in the return of income. Subsequently, assessee filed a rectification request for allowing the TDS credit on 29.11.2022 & 01.02.2023 and rectification order u/s 154 was passed on 24.01.2023 and 16.02.2023 wherein TDS credit was again not allowed. 4. Being aggrieved, assessee filed appeal against the order u/s. 154. On facts it is submitted that TDS of Rs. 7,030/- was deducted by Punjab National Bank, Circle Office- Kharagpur on account of interest received for Rs.93,723/-, Rs.2,018/- was deducted by Punjab National Bank- Circle Office -Kolkata- South on account of interest received for Rs.26,914/-, Rs. 15,215/- was deducted by Tamilnad Merchantile Bank Ltd. on account of interest received for Rs.2,02,863/- and Rs.31,733/- was deducted by State Bank of India on account of interest received for Rs.4,22,915/-, totaling to TDS of Rs.55,996/- for which copy of Form 26AS is placed on record. 4.1. To demonstrate that corresponding income of the TDS amount was included in the return so furnished, a copy of Profit and Loss Account and Balance Sheet along with computation of income are also placed on record. In the course of hearing, ld. Counsel referred to Form 26AS wherein details of tax deducted at source by the deductors for the amount paid/credited to the assessee was verified. Ld. Counsel mapped these entries in Form 26AS with the interest Income reported in the Income & Expenditure Account for the year under consideration 3 ITA No.593/Kol/2023 Manav Seva Sansthan AY 2021-22 placed in the paper book. He thus, reconciled the income which has been offered to tax in the return of income against which TDS credit has been claimed amounting to Rs.55,996/-. 5. CPC, Bengaluru while processing the return has not taken into account the TDS credit in the intimation at Sl. No. 29 containing particulars of prepaid taxes where the amount appears as zero in the column "as computed u/s. 143(1)”. Assessee had filed a rectification application for claiming this credit of TDS which was also rejected by CPC, Bengaluru without providing any explanation or reason for not considering the said claim. Assessee has filed an appeal both, against the intimation u/s. 143(1) as well as against the order passed u/s. 154. 5.1. Before us, assessee is in appeal against the intimation under 143(1) dated 17.09.2022 for which Ld. CIT(A) has dismissed the appeal of the assessee without dealing with the merits of the case but by holding that since similar grounds are taken against the order u/s. 154 dated 16.02.2023, therefore, the impugned appeal against intimation u/s. 143(1) will be dealt with the appellate proceedings in the appeal filed against order u/s. 154 of the Act. 6. In order to bring finality to the issue and avoid multiplicity of litigation for small issue of providing credit of TDS for which corresponding Income has already been offered in the return, we find it proper to verify the records placed by the assessee in the paper book so as to satisfy ourselves about the correctness of the claim. Ld. Counsel has apprised the fact with the relevant documentary evidences to corroborate the claim of TDS and its corresponding Income offered to tax in the return. Ld. Sr. DR could not bring any thing contrary on record to disprove the claim of the assessee. 4 ITA No.593/Kol/2023 Manav Seva Sansthan AY 2021-22 Considering the facts on record and the submissions made before us along with the material contained in the paper book, we direct to allow the claim of TDS credit of Rs.55,996/- to the assessee. Accordingly, ground taken by the assessee in this respect is allowed. 7. In the result, appeal of the assessee is allowed. Order is pronounced in the open court on 9th August, 2023. Sd/-(Rajpal Yadav) Sd/- Girish Agrawal) Vice President Accountant Member Date:9th August, 2023 JD, Sr. P.S. Copy to: 1. The Appellant: 2. The Respondent: 3. CIT(A), NFAC, Delhi 4. CIT, 5. DR, ITAT, Kolkata Bench, Kolkata //True Copy// By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata