Saloni Singhal Khandelwal, Delhi V. ACIT, Circle 67(1), New Delhi

ITA 999/DEL/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0997 (ITAT-DELHI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 04-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 04-04-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 54; 139; 48

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI ANUBHAV SHARMA, JUDICIAL MEMBER I.T.A. No.999/DEL/2023 Assessment Year 2018-19 Saloni Singhal Khandelwal 177, New Rajdhani Enclave, Delhi. Vs. ACIT, Circle-67(1), New Delhi. TAN/PAN: AISPS7926H (Appellant) (Respondent) Appellant by: Shri KVS Gupta, Adv Respondent by: Shri Anuj Garg, Sr.DR Date of hearing: 05 10 2023 Date of pronouncement: 05 10 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f t he C o m m i s s i o n e r o f I n c o m e T a x (A pp ea l s) - Nat i o n al F ac e l es s A ppe a l C e nt re ( N F A C) , D el h i [‘ C I T (A ) ’ i n sh or t ] d a t e d 08 . 0 2. 2 0 2 3 a r is i n g fr o m r e c t i fi c a t i on o rde r p a s s ed u nd er S ec t i o n 15 4 by t he A D IT , CP C da t ed 03 . 0 6. 2 0 20 i n r e l a t i o n t o i nt i m a t i o n d a t e d 21 . 0 2. 2 0 2 0 p r o c e s s e d b y CP C u n d e r S e ct i on 14 3 (1 ) o f t he I n c o me Ta x A c t , 19 6 1 ( t h e A c t ) c o nc e rn in g A Y 20 18- 19. 2. T he g r o un ds o f a pp e a l r ai s e d b y t h e as se s se e re ad a s u nd e r : “ 1 . T he a c t i o n o f L d . A O / C I T (A ) i n as s e s s i n g t h e ne t s al a r y a t R s 9 6 , 9 4 , 4 78 . 00 s h ow n i n t h e I T a f te r d e du c t i ng f or f e it e d s al a r y a m o u nt o f R s 84 , 48 , 1 6 1 . 0 0 f r o m gr o s s s a la r y o f R s . 1, 8 1, 4 2, 63 9 . 00 a nd n o t a l l ow i n g c r e di t o f G r os s T D S o f R s . 6 5 , 0 7 , 55 0. 0 0 o n G r os s S a l ar y i s i l l e g al , a r b it r a r y , u nw a r r a nt e d , u n c al l e d f or , a nd a g a i ns t t h e fa c t s a n d c i r c u m s t a n c e s o f t h e c as e . I.T.A. No.999/Del/2023 2 2 . T he ac t i o n o f L d . A O / C I T ( A ) in n o t a l l o w i n g c r e dit of T D S o f R s 6 5 , 0 7 , 5 50 . 00 c or r e s po n di n g t o s al a r y f r om P W C f o r f ei t e d of R s 8 4 , 4 8 , 1 61 . 00 i s i ll e g al , ar b i t r a r y , u nw a r r a nt e d , u nc a l l e d f o r , a n d a g ai n s t t he f a c t s a n d c i r c um s t an c e s o f t he c a s e . 3 . Th e a c ti o n o f Ld . A O / C I T (A ) i n n ot al l o w i n g c r ed i t o f T D S o f R s 6 5 , 0 7 , 5 , 50 . 00 c or r e s po n di n g t o G r os s S a la r y of R s 1, 8 1 , 4 2 , 6 39 . 0 0 i n v i e w o f Se c t i o n 1 9 9 r e ad w i th R u l e 3 7 B A T he a c t i on o f Ld . A O / C I T (A ) i s i l l e g a l , a r bi t r a r y , un w ar r an t e d, un c a l l ed f o r , a n d ag ai n s t t h e f ac t s an d c i r c u m s t a n c e s o f t h e c a s e . 4 . Th e a c t i on of Ld . C I T (A ) i n c on f i r m i n g t h e a c t i on of L d . A O i n r e je c t i n g t h e c l a i m o f r e f un d o f R s 3 0 , 8 2, 5 10 . 0 0 a s p e r I T R i s i l l e g al , a r b i t r a r y , u n w a r r a n t e d , un c al l e d f o r , an d a ga i n s t th e f a c ts a n d c i r c u m s ta n c e s of t h e c as e . 5 . Th e a c t i on of Ld . C I T (A ) i n c on f i r m i n g t h e a c t i on of L d . A O i n g i v i ng no t i c e u / s . 1 9 3 (9 ) fo r t r e a t i ng IT a s d e fe c ti v e U s 1 39 ( 9 ) (a ) f o r t h e r e a s o n t ha t e n t i r e s a l a r y as pe r F or m 2 6A S i s no t d i s c l os e d t h o ug h c or r e s p o n d i n g T D S h a s b e e n c l a i m e d i s i ll e g al , a r bi t r a r y , u n w a r r a n te d , u nc a l l e d f o r , a n d a ga i n s t t he f a c t s and c i r c u m s t a n c e s o f t h e c a s e . 6 . Th e a c t i o n o f L d. C I T (A ) i n c o n fi r m i n g t he ac t i on o f L d . A O i n n ot a p pr e c i a t i ng t h e f a c t t h at s al a r y o f R s 8 4 , 50 , 56 1 . 00 o ut o f t o t al s al a r y o f R s 1 , 8 1 , 4 2 , 6 3 9 . 0 0 w a s f o r f e i t e d by t he e mpl o y e r a s t he a p pe l l a nt l e f t t h e j o b , he n c e i t w as n e v e r du e no r r e c e i v e d b y t he a p pe l l a nt . 7 . Th e a c t i o n o f L d. C I T (A ) i n c o n fi r m i n g t he ac t i on o f L d . A O i n n ot a l l ow i n g c r e d i t o f 30 , 8 2, 5 10 . 0 0 a s c l a i m e d i n t h e IT i s i l l e g al , a r b i t r a r y , u n w a r r a n t e d , un c al l e d f o r , an d a ga i n s t th e f a c ts a n d c i r c u m s ta n c e s of t h e c as e . 8 . Th e a c t i on of Ld . C I T (A ) i n c on f i r m i n g t h e a c t i on of L d . A O i n r e je c t i n g t he a p pl i c a ti o n u /s . 1 5 4 i s i l le g a l, ar bit r a r y , un w a r r a n t e d , u n c al l e d f o r , a n d a g a i ns t t he f a c t s a n d c i r c um s t an ce s o f th e c as e . 9 . Th e a c t i o n o f L d. C I T (A ) i n c o n fi r m i n g t he ac t i on o f L d . A O i n n ot a l l ow i n g r e a s o na bl e o pp o r t un i t y to t h e a p pe l l an t i s i l l e ga l , ar bi t r a r y , u n w a r r a n te d , u nc a l l e d f o r , a n d a ga i n s t t he f a c t s and c i r c u m s t a n c e s o f t h e c a s e . 1 0 . Th e a c t io n o f L d . C I T (A ) i n c on f i r m i n g t he a c t ion o f L d . A O o n f a c t s a nd i n l a w i n r e j e c ti n g t h e r e f u nd c l a i m i n IT R w h i c h i s d e b at a bl e in na t u r e an d n ot pe r m i s s i b l e u /s . 1 4 3 ( 1 )(a ) / 1 5 4 of t he I n c o m e t a x A c t . ” 3. B ri e f l y s t a t ed , t he a s se ss e e w as e mpl o y e d w i t h Pr i ce I.T.A. No.999/Del/2023 3 Wa t e r ho us e C o o pe rs P vt . L t d . (P w C ) a t t he r e l e v a n t t i me i n t he F i na n c i a l Y e a r 2 01 7 -1 8. A s pe r A nn ua l I n fo r m at i o n Sta t e m e nt o f t he In c o me T ax D e p a r t me n t s h ow n i n F or m 2 6A S , t he s a l ary o f t he a ss es se e w as r e p or t e d a t R s. 1, 81 , 4 2, 6 3 9/ - a n d t h e em pl oy e r i s s h ow n t o ha ve de du c t e d T D S o f Rs. 6 4 , 1 0, 4 53 / - o n s u c h s al ar y . T h e a ss es se e i n i t s r e t ur n o f i n c o me h ow e v e r d e cl a r e d a s u m o f Rs. 9 6 , 94, 4 7 8/ - t o w ar d s s a la r y re c ei ve d a n d cl a i me d T D S d e d uc t e d at Rs. 6 4 , 10, 4 5 3/ - . A s st a t e d , t he d i ffe re n c e b et w e e n sa l a ry r e po rt ed a s pe r F o r m 2 6A S a nd sa l ar y r e p o rt e d a s pe r r et ur n o f in co me re p r e se n t s f or fe i t u r e o f sa l a ry o f R s. 8 4 , 4 8, 16 1/ - (Rs. 1 8 1, 42 , 63 9 ( - ) Rs. 9 6 , 94, 4 7 8/ - ). Wh il e p ro ce ssi ng t h e re t ur n o f i nco m e u n d e r S ec t i on 14 3( 1), t he C P C ad op t e d sa l a ry o f Rs. 9 6 , 94 ,4 7 8 / - a s re t ur n e d b y t he a ss es se e b u t h o w e ve r a ll ow e d T D S cre di t o f Rs. 3 4 , 25, 0 5 2/ - c o r r e sp o n di ng t o t he sa l a r y r e p o rt e d. T h e T D S c r ed it a tt ri b u t a b l e t o t h e for fe it e d sa l a r y w a s t hu s n o t re f u n de d t o t h e a ss es se e a s c l a i m e d i n t he re t u rn o f i n c o me . 4. A g gri e v e d b y t h e de n i a l o f r e f u n d o f T D S d e duc t ed b y t he e m pl o ye rs a s a t t ri but a b l e t o f or f e it e d sa l a r y, t h e a ss e s se e mo ve d a pp l i ca t i on b e f o re CP C se e k i n g r ec t i f i ca t i on u n d e r S e c t i on 1 54 o f t he A c t. H ow e ve r, s ta tu s q uo w a s ma i nt a i n e d i n t h e re c t i f ic a t io n pr o c e e d i n g s a n d n o re l i e f w a s g r a n t e d by t h e CP C to t h e a sse ss e e . 5. A g gri e v e d, t h e a s s ess e e p r e fe rr ed a p p ea l a g a i ns t t h e a fo r e sa i d re c ti f ic a t io n or de r da t ed 03. 0 6. 20 2 0 p ass e d u n de r Se c t i o n 15 4 by t he CP C b e f or e C I T (A ) , N F A C. 6. T he C I T ( A ) h ow e v e r d ec l i n e d t o i nt e r fe r e w i t h t he i m p ug ne d re c ti f ic a t i o n o r d e r. F o r d oi ng so, t h e CI T( A ) r e f e rr e d to a nd r e li e d up o n t he p r o vi si on s o f S ec t i o n 1 9 9 r . w . R ul e 3 7B A of t he I n c o me Ta x R ul e s. I.T.A. No.999/Del/2023 4 7. F u rt h e r a gg ri e ve d, t h e a s se s s ee pr e fe rr ed a p pe a l b e f or e t he Tr i bu n a l . 8. I n t he co ur s e o f he a ri ng b e for e t he T ri bu na l, t he a s s e ss ee mo ve d a n a p pl i c a t i o n fo r ad mi ss i o n o f a dd i t i o na l e vi d e n ce s u n d e r Ru l e 2 9 o f t h e I nc o m e T a x (A p p e l l a t e Tr i b un al ) R u l es vi d e l e t t e r da t ed 2 8. 0 8. 20 23 . T h e c on tr a ct s h ow i ng t e r m s a n d c on di t i o ns o f e m pl o y m e n t a n d an a ff i da vi t d a t ed 2 3 r d A ug u st , 2 0 23 w a s so ug h t t o be p l a ce d for c o nsi de r a t i on o f T ri bu na l by w a y o f add it i o n a l e vi de nc es . T h e l d. c ou n s el fo r t he as s e sse e re fe r r ed to t h e p rov i s io ns o f S e c t i on 19 9 a n d a l s o t h e Ru l e 3 7 B A o f th e I n c o me T a x R ul e s t o su b mi t t h at t he a c t i on o f t h e Re ve nu e i s er ro ne ou s i n d en yi ng t he re fu n d o f t a x de d u c te d o n f or f ei t e d s a l a r y. T he ld . c o un sel f o r t he a ss es se e su b m it s t h a t S ec t i o n 1 9 9 p ro v i d e s t h a t t he t a x d e du c t e d o n be h a l f o f t h e a ss e ss e e i s t o b e tr e a t e d a s pa y m en t o f t ax b y t he a ss es se e a nd t h e re f o re , a ss es se e i s e l i gi b l e fo r r ef un d o f e xc e s s t a x c ol le c t e d b y t h e Re ve n u e. T h e l d. co u n se l al so a d ver te d t o su b Ru le (3 ) o f R u l e 37 B A t o su b mi t t h a t t h e e xp r e s si on u se d i n s ub R u l e (3 ) i s “ a s ses s a b l e ” w h i c h i s no t e qu i v al e n t t o t he e x p re ss i o n “ as se ss e d ” a nd t h u s de sp i t e th e fa c t t h a t sa la ry f or f e i t e d h a s no t be e n a s se ss e d a nd i nc l u d e d i n t h e i nt i ma t io n p r oc e s se d un de r S e c ti o n 14 3( 1 ), t he TD S co rre sp on d i n g t o for fe i te d sa l a r y c an no t b e r e ta i n e d b y t he Re ve n u e. T he T D S qu a t h e fo r fe i t e d sal a r y be l o ng s to t he a ss e s see a nd t h er e f or e, t h e R e v e n u e h a s c o m m i t t e d e r r o r i n wro n g fu l l y ga i ni ng fr o m su c h TD S b y n ot r e f un d in g i t t o t h e a ss es s e e . T he l d. c ou n s el t hu s s o ug ht sui t ab le re l i e f i n t he ma t t e r . 9. T he l d. D R fo r t h e R e v en ue , on t h e ot he r ha n d , re l i e d up on t he fi r st a p p e l l a te o r d e r a nd s ub m i tt e d t ha t t he re fu n d c l ai m o f t he a ss es se e i s n o t ju st i fi e d in vi e w o f th e ex pr e s se d p ro vi si on s o f t he A ct . Th e ld . D R sub mi t s t h a t t he A s se s se e i s n ot e nt i t le d t o t h e I.T.A. No.999/Del/2023 5 re fu n d o f t h e t ax de d u c t e d at s o u rc e b y t he e m p l oyer w he re t he sa l a r y fo r f ei t e d i t s el f ne i t h er h a s be e n i n cl ud ed in t he r et ur n o f i nc o m e n or h a s b e e n a s se ss e d by th e CP C . T h e l d. D R t hu s su b m it s t ha t n o i nt e r fe r e n c e w i th th e o r d e r o f t he CI T( A ) is c al l e d fo r . 10 . W e h a v e co ns i d e r e d t h e r iv al s u b m iss i o ns a n d p er u se d t h e ma t e r i a l a va i l a b l e o n re c o r d. 11 . T he c o n t ro v e r s y r e l a t e s t o en t it l e m e nt o f a ss e sse e o n t a x de d u c t e d at so ur c e i n r e la t i on t o s al a r y fo r fe i t e d b y t he e mp l o ye r i n t he fa c t s o f t h e c a s e n ar r a t ed a b o v e . A s no t e d a b o ve, t h e g e n e si s o f c on t r o v e r sy ha s c o m e t o su r fa ce i n a re c t i f i c a t io n p ro ce e di n g un de r S ec t i on 1 54 o f t he A ct . 11 . 1 S e c t i o n 1 54 o f t h e A ct p ro v i d e s fo r r e c t i fi c a ti on o f an y mi st a ke ap pa re nt fr o m re c o r d . H e nc e , th e s c o p e a n d a m b i t o f S e c t i o n 15 4 i s qu i t e n a r ro w . 11. 2 A pa t e n t , ma ni fe s t a n d se l f -e vi d e n t e rro r i s o ne w h i c h doe s no t r e q u i re e l a b o r at e d i sc u s si o n o f e vi d e n ce o r a r gu me n t s t o e st a b l i sh i t . A n e r r or c a n not be s e e n t o b e ap pa re nt o n t he fa c e o f re c or d i f o n e ha s t o t ra ve l b ey on d t he r e c o r d t o s ee w h e th er t h e a ct i o n i s c o rr e c t o r n ot . A n e rr or a p p ar en t f r o m reco rd m ea n s a n e rr o r w h ic h st r i ke s o n e o n m e r e l o ok i ng a n d d o e s n ot n ee d a n y se r i o us j us t i fi c at i o n . I t i s t r i t e t h at th e po w e r of r e c ti f ic a t i o n c a n be e xe rc is e d o nl y w h e n t h e m i s ta ke w h i c h i s so u g ht t o be re c ti f i e d i s a n ob v i o us a n d pa t e n t mi st a k e w hi c h i s ap pa r e n t fr o m re c or d i n di s t i n c ti on t o a p u rpo rt e d m is t a ke w h i c h r eq ui re s to b e e st a b l i sh e d by a r g u m e n t s an d a lo ng d r a w n pr oc e ss o f r ea so ni ng o n po in ts o n w hi c h t he re ma y p o ssi bl y b e t w o o pi ni on s. 11 . 3 . I n t h e i ns t a nt c a s e , t he a s s es se e h a s so ug h t t o r e l y up o n I.T.A. No.999/Del/2023 6 a dd i t i o na l e v i d e nc e s t o es t a b l i sh t h e fa ct u m o f a p pa re nt m i s ta k e. Re c ti fi c a t i o n b a s ed o n ad di t io na l e vi d e nc e s i s no t p e r m i s si b l e un de r na r r ow a n d l i mi t ed sc o p e o f S e c t i o n 15 4 o f t he A ct ; se co n dl y t h e pl e a o f t h e a s se ss e e o n e x pr e s s io n “a s se s sa bl e ” us ed i n s ub Ru l e ( 3 ) o f R u l e 37 B A i nv ol v e s i n t e r p re t a t i v e p ro ce ss. H en c e, s uc h a c t i o n be i ng s ub j ec t i v e i s pl ai n l y o pp o s e d t o t he ba si c t en e t s o f Se c t i o n 15 4 o f t h e A c t . T h e re fo re w i t h o u t e x p re s si ng o u r opi n io n on me r it s, w e a re c on v i n c ed t ha t a l l e ge d er ro r so ug h t t o b e poi n t e d o ut o n be h a l f o f t he a sse s se e d oe s n ot fa ll w it h i n t h e sw ee p o f pri m a f ac ie mi st a ke o f a p p ar e n t na t u r e e n v i s a g e d u n de r S e ct i o n 1 5 4 o f t h e A c t . Th e a p p e al o f t h e a ss e s se e i n r e c t i fi c at i on p r o ce e di n g s i s t h u s no t ma i nt a i n a b l e a nd h e nc e r e q ui re s t o b e di s m i ss ed a t t he t hr e sh ol d. 11 . 4 H o w ev er , o n co ns p ec t us o f a l l t he fa c t s a n d c irc u m st a n c e s an d ha v i n g re ga r d t o t h e fa c t t h a t p l e a o f t h e a s se ss e e h a s n o t be e n a dd r e ss e d on m e ri t s , w e c o n si d e r i t e x pe di e n t t o g ra n t l i b e r t y to t h e a ss es se e to p u r s ue a pp e l l a t e r e m ed y a ga i n s t t he o r ig i n a l pr o c e ed in gs i n a c c or d an ce w i t h l aw i f so l e g a l l y a dv i se d . I t s ha l l be o pe n t o t he a ss es se e t o r a i s e a n a p pr o p ri a t e p l e a f or c o n d on at io n o f d e l a y o w in g t o t he o n go i n g r ec t i fi c a t i on pr o c e e di ng s b e f ore t h e a pp el l a t e a ut ho r i t y . 11 . 5 I n t e r m s o f d e l i n e a t io ns n o t e d ab o ve , t he a p pea l o f t h e a ss es se e i s di s mi s s e d. 12 . I n t h e re s ul t , th e a p p e a l o f th e a s se ss e e i s dis m i ss e d. Order was pronounced in the open Court on 05/10/2023 Sd/- Sd/- [ANUBHAV SHARMA] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /10/2023 Prabhat