NATURE DELIGHT MULTI STATE CO-OPERATIVE DAIRY & AGRO PRODUCTS LIMITED,PUNE V. CENTRAL CIRCLE 1 (1), PUNE

ITA 1362/PUN/2025

AI Insights

The case involves Nature Delight Multi State Co-operative Dairy & Agro Products Limited, which appealed against the order of the CIT(A) that dismissed their appeal regarding the credit of TDS. The assessee argued that TDS was deducted twice on the same sale transaction under different provisions of the Income Tax Act, which led to a discrepancy in the turnover reported in their books and in Form 26AS. The Tribunal found merit in the assessee's argument that the CPC's reduction of TDS credit was unjustified and remanded the matter for further verification and appropriate action.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782927 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2023-2024
• Appeal Filed On: 26-05-2025
• Laws Referred To: Multi State Cooperatives Societies Act, 2002, Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: HARSHIT BARI
• Assessee Lawyers: DEEPA KHARE
• Keywords: TDS; FORM 26AS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1362/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2023-24 Nature Delight Multi State Co-operative Dairy & Agro Products Limited, Gate No.1189, Nature Delight, A/P- Kalas, Tal- Indapur- 413105. PAN : AAHAN9155F Vs. DCIT, Circle-1(1), Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 29.03.2025 passed by Ld. Addl./JCIT(A), Raipur [‘Ld. CIT(A)’] for the assessment year 2023-24. 2. Facts of the case, in brief, are that the assessee is a Multi State Cooperative Society u/s 7 of Multi State Cooperatives Societies Act, Assessee by : Smt. Deepa Khare Revenue by : Shri Harshit Bari Date of hearing : 20.08.2025 Date of pronouncement : 31.10.2025 Printed from counselvise.com ITA No.1362/PUN/2025 2 2002 and is engaged in business of dairy which deals in milk and milk products and its distribution. Return of income was furnished on 09.09.2023 declaring total income of Rs.8,60,430/- and TDS of Rs.22,62,226/- was claimed. Vide order dated 12.01.2024, the return was processed u/s 143(1) of the Act & CPC gave credit of TDS of Rs.19,63,053/- only, which is proportionate to the turnover declared in the books of accounts. As per Form 26AS, the turnover of the assessee was Rs.95,46,60,639/- on which TDS of Rs.22,62,239/- was deducted. However, the assessee in his books of accounts declared turnover of only Rs.82,84,04,801/- and therefore, CPC gave credit of TDS of Rs.19,63,053/- which is proportionate to the turnover of Rs.82,84,04,801/-. Accordingly, CPC disallowed the credit of TDS of Rs.2,99,186/-. 3. Being aggrieved, the assessee preferred an appeal before Ld. CIT(A). After considering the reply, Ld. CIT(A) dismissed the appeal filed by the assessee. 4. It is the above order against which the assessee is in appeal before this Tribunal. 5. Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. CIT(A) is unjustified. Ld. Printed from counselvise.com ITA No.1362/PUN/2025 3 AR submitted that the assessee cooperative society sold goods to various parities through National Cooperative Diary Federation of India Limited (‘NCDFI’) which has deducted TDS u/s 194-O as e-commerce operator and on same transaction the other parties (purchasers) have also deducted TDS u/s 194Q which resulted in double TDS on the same sale transaction which ultimately prevented the appellant to match gross receipt as per Form 26AS since the same sale transaction was appearing twice in Form 26AS. Accordingly, Ld. AR submitted that the same sale transaction was subjected to two TDS under two different provisions of the Act and that particular sale transaction was reflected in the books of accounts only as a single transaction, however in Form 26AS it was appearing twice and for this reason alone CPC did not allow the proportionate TDS of Rs.2,99,186/-. Accordingly, Ld. AR requested before the Bench to allow the credit of TDS of Rs.2,99,186/- which was earlier disallowed by the CPC. 6. Ld. DR appearing from the side of the Revenue relied on the orders passed by the subordinate authorities and requested to confirm the same. Printed from counselvise.com ITA No.1362/PUN/2025 4 7. We have heard Ld. Counsels from both the side and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that the assessee cooperative society used to sell some part of its sale through NCDFI and NCDFI has deducted TDS u/s 194-O of the Act and the other parties who are purchasing the goods have also deducted TDS u/s 194Q of the Act on the same transaction and both the TDS along with their related turnover were appearing in Form 26AS. According to CPC, both the TDS were deducted on separate transaction, however as per the assessee it is a single sale transaction attracting TDS under two different provisions of the Act. Accordingly, we find force in the above arguments of Ld. counsel of the assessee that reduction of credit of TDS by CPC is not justified. 8. Considering the totality of the facts of the case & in view of our above discussion, we deem it appropriate to set-aside the order passed by Ld. CIT(A) & remand the matter to the file of the Jurisdictional Assessing Officer to verify the contention of the assessee in this regard & to allow the remaining credit of TDS as per law. Thus the grounds of appeal raised by the assessee are partly allowed. Printed from counselvise.com ITA No.1362/PUN/2025 5 9. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on this 31st day of October, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 31st October, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Addl./JCIT(A), Raipur. 4. The Pr.CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "