TECHNO FORCE (INDIA ) P.LTD, MUMBAI V. DCIT 14(3)(1), MUMBAI

ITA 641/MUM/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0360 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 30-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K RAVIKIRAN
• Assessee Lawyers: DILIP P BAPAT
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 641 /MUM/2015 ASSESSMENT YEAR: 2010 - 11 TECHNO FORCE (INDIA) P. LTD. LOKHANDW MARG. OFF GHATKOPARMANKHURD LINK ROAD, GOVANDI (W) MUMBAI - 400043 VS. DCIT - 14(3)(1) 479, AAYAKARBHAVAN, M.K. ROAD MUMBAI - 400020. PAN NO. AABCT2175K APPELLANT RESPONDENT ASSESSEE BY : SHRI DILIP P. BAPAT , AR REVENUE BY: SHRI K. RAVI KIRAN, DR DATE OF HEARING : 17 /05/2017 DATE OF PRONOUNCEMENT : 10/08/2017 ORDER PER N.K. PRADHAN, A.M . THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEAR IS 2010 - 11 . THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 22 , MUMBAI AND ARISES OUT OF THE ASSESSMENT COMPLETED U/S 154 OF THE INCOME TAX ACT 1961 ( T HE ACT). ITA NO. 641/ MUM/2015 2 2. THE GROUND OF APPEAL FILED BY THE ASSESSEE READ S AS UNDER: - T HE LD. CIT(A) HAS ERRED IN UPHOLDING THE ORDER PASSED BY ASSISTANT COMMISSIONER OF INCOME TAX, CPC BANGALORE DENYING THE CREDIT OF DIVIDEND DISTRIBUTION TAX OF RS.7,81,804/ - . 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN O F INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 27.09.2010. IN RESPONSE TO IT THE ASSESSEE RECEIVED AN INTIMATION U/S 143(1) DATED 23.11.2011 FROM THE CENTRALIZED PROCESSING CENTRE (CPC), BANGALORE. THE ASSESSEE FOUND THAT THE CREDIT FOR PAYMENT OF DIVIDEND D ISTRIBUTION TAX (DDT) OF RS.7,81,804/ - PAID ON 12.09.2009 IN RESPECT OF DIVIDENDS PAID ON 01.09.2009 PROVIDED IN THE ACCOUNTS OF THE FINANCIAL YEAR ENDED 31.03.2009 RELEVANT TO THE AY 2009 - 10 WAS NOT ALLOWED. PRESUMING THAT THE CREDIT HAS NOT BEEN ALLOWED ON THE GROUND THAT THE SAID PAYMENT WAS NOT REFLECTED IN FORM 26AS FOR AY 2010 - 11 (SINCE THE ASSESSMENT YEAR WRONGLY MENTIONED IN THE CHALLAN WAS AY 2009 - 10), A CORRECTED RETURN WAS FILED ON 06.05.2013. IN THE CORRECTED RETURN, CREDIT FOR DDT OF RS.7,64,03 6/ - WAS SOUGHT ON THE BASIS THAT THE SAID PAYMENT WAS MADE ON 02.09.2010, RELATED TO THE DIVIDENDS PROVIDED IN THE ACCOUNTS OF THE FINANCIAL YEAR ENDED 31.03.2010, RELEVANT TO THE AY 2010 - 11 WHICH WAS REFLECTED IN FORM 26AS FOR AY 2010 - 11. THE CPC HAS NOT ALLOWED TAX CREDIT FOR EITHER OF THESE PAYMENTS IN THE ORDER OF RECTIFICATION PASSED U/S 154 OF THE ACT. 4. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE FILED AN APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS FOUND THAT IN THE CHALLAN FOR PAYMENT OF D DT AMOUNTING TO RS.7,64,036/ - , BY MISTAKE THE ASSESSMENT ITA NO. 641/ MUM/2015 3 YEAR WAS ENTERED AY 2009 - 10 INSTEAD OF AY 2010 - 11. THE CREDIT IS APPEARING IN FOR M 26AS PERTAINING TO AY 2009 - 10. CREDIT FOR RS.7,81,804/ - IS APPEARING IN PART C UNDER MAJOR HEAD 0020 AND MINOR HEAD 106. THE LD. CIT(A) HAS FOUND THAT BECAUSE OF THE ABOVE REASON FORM NO. 26AS FOR AY 2010 - 11 DID NOT REVEAL THE CREDIT FOR TAXES PAID. THEREFORE, GOING BY FORM NO. 26AS FOR AY 2010 - 11, THE AO HA S NOT GIVEN CREDIT FOR PAYMENT MADE U/S 115 - O. THE LD. CIT(A) HAS ALSO OBSERVED THAT AS PER THE DIRECTION OF ACIT (CPC), THE ONLY OPTION LEFT TO THE ASSESSEE IS TO REQUEST THE BANK TO ALTER THE ASSESSMENT YEAR AND THEN TO GET THE DUE CREDIT AFTER SUCH RECTI FICATION. THUS THE LD. CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE. 5. BEFORE US, THE LD. COUNSEL OF THE ASSESSEE SUBMITS THAT AN AMOUNT OF RS.7,64,036/ - UNDER THE MINOR HEAD 106 - TAX ON DISTRIBUTED PROFITS HAS BEEN PAID FOR THE AY 2010 - 11 THROUGH CENTRAL BANK OF INDIA . HE FILED A COPY OF ACKNOWLEDGEMENT IN RESPECT OF IT. ALSO IT IS STATED BY HIM THAT FORM 26AS FOR THE AY 2010 - 11 REFLECTS THE ABOVE AMOUNT. THE DATE OF DEPOSIT IS 02.09.2010. AS PER THE INTIMATION U/S 143(1) ISSUED BY CPC, B ANGALORE NO CREDIT HAS BEEN GIVEN AGAINST THE DDT LIABILITY OF RS.7,81,804/ - . IT IS SUBMITTED BY HIM THAT AN AMOUNT OF RS.7,81,804/ - WAS PAID ON 12.09.2009 FOR THE AY 2009 - 10. FURTHER IT IS STATED BY HIM THAT THE CHALLAN CORRECTION MECHANISM OF INCOME TA X DEPARTMENT MENTIONS THE FOLLOWING : - ITA NO. 641/ MUM/2015 4 UNDER OLTAS (ON LINE TAX ACCOUNTING SYSTEM), THE PHYSICAL CHALLANS OF ALL D IRECT TAX PAYMENTS RECEIVED FROM THE DEDUCTORS /TAXPAYERS ARE DIGITIZED ON DAILY BASIS BY THE COLLECTING BANKS AND THE DATA TRANSMITTED TO TI N (TAX INFORMATION NETWORK) THROUGH LINK CELL. AT PRESENT, THE BANKS ARE PERMITTED TO CORRECT DATA RELATING TO THREE FIELDS ONLY I.E. AMOUNT, MAJOR HEAD CODE AND NAME. THE OTHER ERRORS CAN BE CORRECTED ONLY BY THE ASSESSING OFFICERS. NEW PROCEDURE OF CHAL LAN CORRECTION BY BANKS (FOR PHYSICAL CHALLANS): TO REMEDY THIS SITUATION, A NEW CHALLAN CORRECTION MECHANISM FOR PHYSICAL CHALLANS HAS BEEN PUT IN PLACE. UNDER THIS MECHANISM, FOR INCOME TAX PAYMENTS MADE ON OR AFTER 01.09.011, THE FOLLOWING FIELDS CAN BE GOT CORRECTED THROUGH THE CONCERNED BANK BRANCH: ASSESSMENT YEAR MAJOR HEAD CODE MINOR HEAD CODE TAN/PAN TOTAL AMOUNT NATURE OF PAYMENT (TDS CODES) 6. ON THE OTHER HAND, THE LD. DR SUPPORTS THE ORDER PASSED BY THE LD. CIT(A). 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIALS ON RECORD. THE ISSUE INVOLVED IN THE PRESENT APPEAL IS THE PAYMENT OF DD T OF RS.7,81,804/. WE FIND THAT IT WAS PAID ON 12.09.2009. THE SAME IS EVIDENT FROM THE TAXPAYERS COUNTERFOIL ISSUED BY CENTRAL BANK OF INDIA. THE ASSESSMENT YE AR WRONGLY MENTIONED THEREIN IS 2009 - 10. DURING THAT PERIOD IT WAS POSSIBLE FOR THE BANKS TO COR RECT DATA ITA NO. 641/ MUM/2015 5 RELATING TO 3 FIELDS ONLY I.E. AMOUNT, MAJOR HEAD CODE AND NAME. THE OTHER ERRORS CAN BE CORRECTED ONLY BY THE ASSESSING OFFICERS. 7.1 IN VIEW OF THE ABOVE FACTS, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ACIT(CPC) TO PASS AN ORDER A FRESH KEEPING IN MIND OUR OBSERVATION AT PARA 7 HERE - IN - ABOVE AFTER VERIFICATION OF THE RECORD. 8. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10/08/2017. SD/ - SD/ - (MAHAVIR SINGH) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 10/08/2017 RAHUL SHARMA, SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI