KAMLA,SIRSA V. ADDL/JCIT (A)-5, CHENNAI

ITA 3210/CHNY/2024

AI Insights

The case involves an appeal by Kamla against the order of the Additional Commissioner of Income Tax (Appeals), Chennai, which confirmed the adjustment made by the Centralized Processing Center (CPC), Bengaluru. The CPC had allowed a TDS credit of Rs. 9,654 as opposed to the Rs. 60,250 claimed by Kamla for the Assessment Year 2022-23. The primary contention was whether Kamla, acting as a commission agent, was eligible for the full TDS credit claimed. The Tribunal found that the CPC and the Addl. CIT(A) did not provide adequate reasons for the partial denial of the TDS credit and directed a re-evaluation of the claim.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717298 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Appeal Filed On: 16-12-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Keywords: TDS

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग र, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3210/Chny/2024 िनधा 9रण वष9 /Assessment Year: 2022-23 Kamla, Shop No.2, Additional Mandi, Sirsa, Haryana – 125 055. [PAN: ARUPD 2844G] Vs. The Income Tax Officer, NWR-W-(57)(95), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथE की ओर से/ Appellant by : None GHथE की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 09.07.2025 घोषणा की तारीख /Date of Pronouncement : 11.08.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2022-23 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-5, Chennai [hereinafter “Addl. CIT(A)”] dated 17.10.2024 in the matter of intimation u/s. 143(1) issued by the Centralized Processing Center, Bengaluru (CPC) dated 17.02.2023. Printed from counselvise.com ITA No.3210/Chny/2024 Kamla :- 2 -: 2. The CPC, in the intimation issued u/s. 154/143(1) of the Act, has allowed the credit of TDS credit of Rs. 9,654/- as against the claim of Rs.60,250/-. Aggrieved by the same, the assessee preferred an appeal before the Ld. Addl. CIT(A). However, the Ld. Addl. CIT(A) dismissed the appeal, observing that the transactions undertaken by the assessee during the year are in the nature of trade and not in the nature of a commission agent , therefore, CPC has correctly made the adjustment by invoking the provisions of Rule 37BA. 3. The assessee in the ground of appeal has stated that the CPC has denied the claim of credit of TDS, in the order passed u/s.154 r.w.s 143(1) of the Act without providing any opportunity or giving reasons. The assessee has further stated that the assessee is a commission agent and eligible for the TDS claim, as the TDS has been deducted from its receipts. 4. On the other hand, the Ld. Departmental Representative (DR) relied on the orders of the lower authorities. Printed from counselvise.com ITA No.3210/Chny/2024 Kamla :- 3 -: 5. We have heard the case with the help of Ld. DR and perused the materials available on record. The assessee, in the return of income, has claimed TDS of Rs. 60,250/-, but CPC has allowed credit of only Rs. 9,654/-. The CPC has not given reasons for not granting full credit of TDS. The Ld. Addl. CIT(A) has confirmed the denial of credit, stating that the assessee is only a commission agent, and the ITR does not support that the trade debtors’ balance corresponds to the sales turnover. It was also observed that the TDS should have been deducted u/s. 194I and not u/s. 194Q. We do not agree with the Ld. Addl. CIT(A) in confirming the action of CPC in the order u/s. 154/143(1) of the Act denying the credit of TDS deducted from the assessee’s account. As the TDS has been deducted and paid from assessee’s receipt, and the same is reflected in its account, the assessee is eligible to claim the TDS credit. Accordingly, we direct the A.O to verify the claim of TDS and allow the same in accordance with law. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.3210/Chny/2024 Kamla :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 11th day of August, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 11th August, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "