MANGALAM PHOSPHATES LIMITED,AHMEDNAGAR V. INCOME TAX OFFICER, AHMEDNAGAR

ITA 2593/PUN/2024

AI Insights

The case involves Mangalam Phosphates Limited, the appellant, contesting the order of the CIT Appeal (NFAC) which arose from a rectification order passed by the Centralized Processing Center (CPC) under section 154 of the Income-tax Act, 1961. The dispute centered on the incorrect consideration of prepaid taxes (TDS) by the CPC, which initially recognized TDS of Rs. 6,68,304 instead of the Rs. 9,66,285 as per Form 26AS. Although the CPC later corrected this in a subsequent order, the assessee appealed to the ITAT seeking further rectification and acknowledgment of the correct TDS amount.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36197 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHAL A MAKAWANE
• Keywords: TDS; Rectification of order; FORM 26AS
• Section: 250; 154

Judgement Text

"आयकर अपीलीय अधिकरण \"एस एम सी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"SMC\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2593/PUN/2024 धििाारण वषा / Assessment Year: 2021-2022 Mangalam Phosphates Limited, 7273, M.G. Road, Sarda Lane, Ahmednagar-414001 Maharashtra PAN-AACCM4175F Vs ITO, Ward-2, Ahmednagar, Appellant Respondent Assessee by : None Revenue by : Shri Vishal A Makawane Date of hearing : 15.01.2025 Date of pronouncement : 18.03.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of the assessee is directed against the order of Ld. CIT Appeal (NFAC) u/s 250 of the Income-tax Act, 1961 dated 21.10.2024 which is arising out of Order passed u/s.154 of the Act dated 24.01.2023. 2. Assessee has raised following grounds of appeal:- 1. The Ld. CIT(A) NFAC has erred in passing order u/s 250 not considered rectification order passed u/s 154 dated 17.08.2023 by CPC in which CPC has wrongly considered Pre-paid Taxes (i.e TDS). 2. The Ld. CIT(A) NFAC has erred on facts and in law in passed order u/s 250 without considering our reply and confirming the action of Centralized Processing Center for wrongly considered Pre-paid Taxes (i.e TDS) of Rs. 6,68,304/- and created demand of Rs.2,99,470/- in Rectification Order u/s 154, but actual prepaid taxes (ie TDS) of Rs. 9,66,285/- as per 26AS. 3. The assessee craves to amend alter and modify any of the grounds of appeal. 3. When the case was called for none appeared on behalf of the assessee. However considering the smallness of the issue relating to TDS credit, we proceed to adjudicate the appeal with 2 ITA No.2593/PUN/2024 the assistance of Ld. DR who has supported the order of the Ld. CIT(A). We have heard Ld. DR and perused the record placed before us. Sole grievance of the assessee is that the CPC in its rectification order u/s 154 of the Act dated 24.01.2023 has allowed the TDS to the tune of Rs. 6,68,304/- as against actual TDS credit as per Form 26AS at Rs. 9,66,285/- 4. However on perusal the Para 5.2 of the impugned order, we note that Ld. CIT(A) NFAC has referred to the subsequent order of the CPC u/s 154 of the Act dated 02.05.2023 as per which TDS credit of Rs. 9,66,285/- has been allowed to the assessee. It is also noticed that in Form No. 35, the assessee has referred to the rectification order u/s 154 of the Act, dated 24.01.2023, but thereafter assessee filed another rectification application u/s 154 of the Act on 27.01.2023 and CPC vide order dated 02.05.2023 allowed the assessee’s application and granted TDS credit of Rs. 9,66,285/- as claimed by the assessee. Based on this fact that the CPC has rectified the demand Ld. CIT(A) dismissed the appeal as infructuous. 5. Assessee is now in appeal before this Tribunal, and considering the observation of the CIT(A) in Para 5.2 of the impugned order referring to CPC order u/s 154 of the Act dated 02.05.2023 having allowed TDS credit of Rs. 9,66,285/- we note that order of CPC dated 02.05.2023 is not available on record. Therefore we deem it proper to restore this issue to the file of Ld. JAO who shall verify the status of the prepaid tax credit allowed to the assessee for A.Y. 2021-22 in the CPC order u/s 154 dated 02.05.2023 and then decide in accordance with law alongwith taking into consideration the TDS credit appearing in Form 26AS issued by the Department under the PAN of the assessee. 3 ITA No.2593/PUN/2024 For carrying out this exercise Ld. JAO shall provide reasonable opportunity of hearing to the assessee. 6. In the result appeal of the assessee is allowed for statistical purposes. Order pronounced on this 18th day of March, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ Pune; दििांक / Dated: 18th March, 2025. Neeta आिेश की प्रधिधलधप अग्रेधषि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"SMC\" बेंच, पुणे / DR, ITAT, \"SMC\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune "