M/S. TITAGARH RAIL SYSTEMS LTD.,KOLKATA V. ADIT, CPC, BENGALURU

ITA 2674/KOL/2024

AI Insights

The case involves M/s. Titagarh Rail Systems Ltd., the appellant, contesting the orders of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2021-22. The primary issues in the appeal included the confirmation of a disallowance of \\u20b917,56,707 by the AO under section 143(1) of the Income Tax Act, and the denial of TDS credit of \\u20b95,81,330 pertaining to an amalgamating company. The Tribunal dismissed the first issue, citing a precedent from the Supreme Court, and restored the second issue to the AO for further examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25572 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2021-2022
• Other Referred Cases: Checkmate Services Pvt Ltd Vs. CIT [2022] 143 taxmann.com 278 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAILEN SAMADDER
• Assessee Lawyers: S. JHAJHARIA
• Keywords: TDS
• Section: 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA No.2674/KOL/2024 (Assessment Year:2021-22) M/s. Titagarh Rail Systems Ltd., 756, Anandapur Road, E.M. Bypass, Kolkata, West Bengal, 700107 Vs. ADIT, CPC Centralized Processing Centre, Income Tax Department, Bengaluru, Karnataka, 560500 (Appellant) (Respondent) PAN No. AABCT1377P Assessee by : Shri S. Jhajharia, AR Revenue by : Shri Sailen Samadder, DR Date of hearing: 26.03.2025 Date of pronouncement : 01.04.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 28.10.2024 for the AY 2021-22. 02. The issue raised in ground no.1 to 3 is against the confirmation of disallowance of ₹17,56,707/- as made by the ld. AO, CPC, while passing the order u/s 143(1) of the Act and also that the issue is debatable and no addition could be made in the order passed u/s 143(1) of the Act. 03. After hearing the rival contentions and perusing the materials available on record, we find that the issue is squarely covered by the decision of Hon'ble Apex Court in the case of Checkmate Services Pvt Ltd Vs. CIT [2022] 143 taxmann.com 278 (SC)\" against the assessee. Accordingly, grounds raised by the assessee are dismissed.Pertinent Page | 2 ITA No. 2674/KOL/2024 M/s Titagarh Rail Systems Ltd.; A.Y. 2021-22 to state that the addition on account of PF/ ESI can be made u/s 143(1) of the Act intimation as this is a prima facie adjustment as all the information qua the allowance or disallowances are available in the information furnished by the assessee. Therefore, on this score also appeal of the assessee is dismissed. 04. The issue raised in ground no.4 is against the order of ld. CIT (A) upholding the order of ld. AO, wherein the TDS credit of ₹5,81,330/-, pertinent to the amalgamating company was denied to the assessee. 05. After hearing the rival contentions and perusing the materials available on record, we find that the assessee has not been allowed the credit of TDS to the tune of ₹5,81,330/- by the ld. AO/ CPC. This issue was not adjudicated by the ld. CIT (A) in the appellate order and nor any facts qua the said issue are available before us. Accordingly, we restore this issue to the file of the ld. AO with a direction to examine the same and if the TDS is deducted on behalf of company which is merged with the assessee, then the same is to be allowed to the assessee. With this observation, the ground is restored to the file of the ld. Assessing Officer to examine the same and decide in terms of our observation given hereinabove. 06. In the result, the appeal of the assessee partly allowed for statistical purposes. Order pronounced in the open court on 01.04.2025. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 01.04.2025 Sudip Sarkar, Sr.PS Page | 3 ITA No. 2674/KOL/2024 M/s Titagarh Rail Systems Ltd.; A.Y. 2021-22 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "