MAHESH CHAND KHANDELWAL, Ajmer V. ITO, Ajmer

ITA 859/JPR/2014

• Counselvise Citation: 85923114 RSA 2014
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 15-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA CIT DHK
• Assessee Lawyers: G C JAIN ITP
• Section: 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH IH-DS-CALY] YS[KK LNL; DS LE{K BEFORE: SHRI P.K. BANSAL, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 859/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08. SHRI MAHESH CHAND KHANDELWAL, 23/256, KAISER GANJ, AJMER. CUKE VS. THE INCOME TAX OFFICER, WARD 1(2) AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR/ NO.: ABVPK 9330 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI G.C. JAIN, ITP JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA, ADDL. CIT LQUOKBZ DH RKJH[K@ DATE OF HEARING : 03/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 4/11/2015 VKNS'K@ ORDER PER P.K. BANSAL, A.M. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT (A) DATED 29.09.2014 BY TAKING THE FOLLOWING EFFECTIVE GROUND OF APPEAL :- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) GROSSLY ERRED IN LAW AND ON FACTS IN CONFIRMING ORDER U/S 154 OF THE INCOME TAX OFFICER, WARD 1(2), AJMER. THE ORDER CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS BAD-IN-LAW, BASED ON SURMISES & CONJEC TURES, ARBITRARY & CAPRICIOUS, INJUDICIOUS, AGAINST THE SETTLED PRIN CIPLES OF LAW/GLARANT PROVISIONS OF SEC. 199, AS SUCH THE SAM E DESERVED TO BE AMENDED. 2 ITA NO. 859/JP/2014 A.Y. 2007-08. SHRI MAHESH CHAND KHANDELWAL VS ITO AJMER. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS FILED THE RETURN DATED 16.08.2007 AT AN INCOME OF RS. 96,460/- WHICH WAS P ROCESSED UNDER SECTION 143(1). SUBSEQUENTLY ORDER UNDER SECTION 154 WAS PASSED ON 2.2.2009 RECTIFYING HIS ORIGINAL ORDER DISALLOWING THE TDS CLAIM OF RS. 57,698/-. O N THIS, ASSESSEE FILED RECTIFICATION APPLICATION DATED 15.03.2009 UNDER SECTION 154 STAT ING THAT CREDIT OF TDS AMOUNT OF RS.57,698/- WAS NOT ALLOWED TO THE ASSESSEE AND, TH EREFORE, THERE IS A MISTAKE APPARENT ON RECORD. 3. AFTER HEARING THE RIVAL SUBMISSIONS AND GOING TH ROUGH THE ORDER OF THE TAX AUTHORITIES BELOW, I NOTED THAT IN THIS CASE THE AS SESSEE HAS CLAIMED CREDIT FOR THE TDS AMOUNTING TO RS. 57,698/- WHICH HAS BEEN DEDUCTED O UT OF THE ADDITIONAL COMPENSATION INCOME RECEIVED BY THE ASSESSEE AND OFFERED BY HIM FOR TAXATION EVEN THOUGH THE ASSESSEE CLAIMED EXEMPTION UNDER SECTION 54EC ON THI S INCOME. THE REVENUE HAS DULY ACCEPTED THE INCOME AND ASSESSED THE SAME IN THE HA NDS OF THE ASSESSEE AND HAS ALSO ALLOWED THE EXEMPTION UNDER SECTION 54EC AS THE ASSE SSEE COMPLIED WITH THE CONDITION AS ENUMERATED THEREIN. NO DOUBT, TDS CERTIFICATES ARE NOT IN THE NAME OF THE ASSESSEE BUT THE PROVISIONS OF SECTION 199 OF THE IT ACT ARE VERY CLEAR WHICH STATE AS UNDER :- SEC. 199(1) : ANY DEDUCTION MADE IN ACCORDANCE WI TH THE FOREGOING PROVISIONS OF THIS CHAPTER AND PAID TO THE CENTRAL GOVERNMENT SHALL BE TREATED AS A PAYMENT OF TAX ON BEHALF OF THE PERSON FROM WHOSE INCOME THE DEDUCTION WAS MADE, OR OF THE OWNER OF THE SECU RITY, OR OF THE DEPOSITOR OR OF THE OWNER OF PROPERTY OR OF THE UNI T-HOLDER, OR OF THE SHAREHOLDER, AS THE CASE MAY BE. SINCE THE INCOME HAS BEEN MADE CHARGEABLE TO TAX IN THE HANDS OF THE ASSESSEE OUT OF WHICH THE TDS AMOUNTING TO RS. 57,698/- WAS DEDUCTE D. THEREFORE, IN VIEW OF THE 3 ITA NO. 859/JP/2014 A.Y. 2007-08. SHRI MAHESH CHAND KHANDELWAL VS ITO AJMER. SPECIFIC PROVISIONS OF SECTION 199(1), THE ASSESSEE IS BOUND TO HAVE THE CREDIT FOR THE SAME. IF THE REVENUE FAILS TO GIVE THE CREDIT, THAT IN MY VIEW, WILL TANTAMOUNT TO A MISTAKE APPARENT ON RECORD. AS THERE CANNOT BE ANY OTHER VIEW TAKEN IN RESPECT OF THE PROVISIONS OF SECTION 199, THE ONLY VIEW WHICH CAN BE TAKEN IS THAT THE PERSON OUT OF HIS INCOME THE DEDUCTION WAS MADE FOR THE TAX SHALL GET THE CREDIT FOR SUCH TDS. THE FACTS ENUMERATED ARE NOT DISPUTED BY THE LD. D/R. I, THE REFORE, SET ASIDE THE ORDER OF LD. CIT (A) AND DIRECT THE AO TO GIVE THE CREDIT TO THE ASS ESSEE IN RESPECT TO THE TDS OF RS. 57,698/-. 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 4/11/2015. SD/- IH-DS-CALY ( P.K. BANSAL ) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 4/11/ 2015 DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI MAHESH CHAND KHANDELWAL, AJMER. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD 1(2), AJMER. 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 859/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 859/JP/2014 A.Y. 2007-08. SHRI MAHESH CHAND KHANDELWAL VS ITO AJMER.