NAVNATH DURYODHAN GOLANDE,MUMBAI V. INCOME TAX OFFICER WARD 1(1), KALYAN

ITA 5567/MUM/2024

AI Insights

The case involves Navnath Duryodhan Golande, the appellant, who contested the rejection of his rectification application concerning the credit of TDS/TCS by the Centralized Processing Center (CPC) under section 143(1)(a) of the Income-tax Act, 1961. The CPC had processed the return but did not grant the credit for TDS/TCS as claimed by the assessee. The Assessing Officer rejected the rectification application, which was upheld by the CIT(A), stating that the issue was controversial and not a mistake apparent on record under section 154. The Tribunal, however, found that the credit should be granted as per Form No. 26AS, which is verified by the Department from the tax deductors, and directed the Assessing Officer to allow the credit in accordance with the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24068 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAVIN SALUKHE
• Keywords: Set aside; Tax effect; TDS
• Section: 154

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H (SMC)” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) ITA No. 5567/MUM/2024 Assessment Year: 2017-18 Navnath Duryodhan Golande, H.No. 1005, Shree Krishna Hsg. Soc. Subhash Nagar, Kalyan Road, Bhiwandi-421302. NA Kulkarni (Advocate) Wadal Bldg., Near DNS Bank Manpada Road, Dombivali (East)-421201. Vs. ITO Ward 1(1) Mohan Plaza, Khadakpada, Kalyan (West)-421301. PAN NO. AIWPG 8278 J Appellant Respondent Assessee by : None Revenue by : Mr. Pravin Salukhe, Sr. DR Date of Hearing : 14/01/2025 Date of pronouncement : 21/01/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 28.09.2024 passed by the National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds: 1) The Assessing Officer has erred in rejecting the appeal against the rejection order u/s.154 duly passed by the CPC., be confirmed, stating the view, CPC. Cannot review the matter and not give the tax effect though it is reflecting on the site of the CPC. on portal for tax deducted and TDS being deducted and the assessee eligible for such tax credit. 2) Thus, it is an apparent mistake on record that, tax credit not properly granted be an apparent mistake on record u/s.154. The appellant not filed the revision application be considered at your stage. 2. We have heard rival submission of the partie relevant material on record. In the case, the return of income filed by the assessee was processed by the CPC and order u/s 143(1)(a) of the Income-tax Act, 1961 (in short ‘the Act’) was passed order, credit of certain collected at source(TCS the assessee filed rectification seeking credit of the relevant TDS/TCS. The assessee filed copy of the updated form No. 26AS in s TDS. But the Ld. Assessing Officer rejected the rectification request of the assessee. 2.1 On further appeal, the Ld. CIT(A) held that u/s 154 only mistake apparent on the record could be rectified and not an issue which require any long finally concluded as under: “The above discussion makes it clear that the issue is a controversial one and is yet to attain finality. Therefore, being a controversial issue, this issue is beyon Navnath Duryodhan Golande ITA No. 5567/MUM/2024 1) The Assessing Officer has erred in rejecting the appeal against the rejection order u/s.154 duly passed u/s.143(1)(a) by the CPC., be confirmed, stating the view, CPC. Cannot review the matter and not give the tax effect though it is reflecting on the site of the CPC. on portal for tax deducted and TDS being deducted and the assessee eligible for such tax 2) Thus, it is an apparent mistake on record that, tax credit not properly granted be an apparent mistake on record u/s.154. The appellant not filed the revision application be considered at your stage. We have heard rival submission of the parties and perused the relevant material on record. In the case, the return of income filed by the assessee was processed by the CPC and order u/s 143(1)(a) tax Act, 1961 (in short ‘the Act’) was passed credit of certain tax deducted at source( TCS) was not granted to the assessee. Therefore, rectification application u/s 154 of the Act seeking credit of the relevant TDS/TCS. The assessee filed copy of orm No. 26AS in support of claim of the credit of the TDS. But the Ld. Assessing Officer rejected the rectification request On further appeal, the Ld. CIT(A) held that u/s 154 only mistake apparent on the record could be rectified and not an issue ch require any long drwan process of reasoning. The Ld. CIT(A) finally concluded as under: The above discussion makes it clear that the issue is a controversial one and is yet to attain finality. Therefore, being a controversial issue, this issue is beyon Navnath Duryodhan Golande 2 ITA No. 5567/MUM/2024 1) The Assessing Officer has erred in rejecting the appeal u/s.143(1)(a) by the CPC., be confirmed, stating the view, CPC. Cannot review the matter and not give the tax effect though it is reflecting on the site of the CPC. on portal for tax deducted and TDS being deducted and the assessee eligible for such tax 2) Thus, it is an apparent mistake on record that, tax credit not properly granted be an apparent mistake on record u/s.154. The appellant not filed the revision application be considered s and perused the relevant material on record. In the case, the return of income filed by the assessee was processed by the CPC and order u/s 143(1)(a) tax Act, 1961 (in short ‘the Act’) was passed. In said ed at source(TDS) and tax was not granted to the assessee. Therefore, application u/s 154 of the Act seeking credit of the relevant TDS/TCS. The assessee filed copy of upport of claim of the credit of the TDS. But the Ld. Assessing Officer rejected the rectification request On further appeal, the Ld. CIT(A) held that u/s 154 only mistake apparent on the record could be rectified and not an issue process of reasoning. The Ld. CIT(A) The above discussion makes it clear that the issue is a controversial one and is yet to attain finality. Therefore, being a controversial issue, this issue is beyond the ambit of provisions of section 154 of the Act. Various courts of law have time and again held that any controversial issue cannot be entertained u/s 154 of the Act, as the same cannot be stated to apparent on record\". Therefore, there is interfering with the Order and it is upheld. 2.2 We find that the assessee was seeking rectification of the tax credit in respect of two parties. The only plea of the assessee is to grant credit of TDS as per the f is no controversy that No. 26AS i.e. the TDS credit which is verified by the Department from the tax deductors and the section 154 of the Act i.e. rectification. Accor finding of the Ld. CIT(A) on the issue restored back to the Ld. Assessing Officer for verification of the claim of the assessee for credit of TDS as per Form No. 26AS and allow in accordance with law. The are accordingly allowed. 3. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on Sd/- (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 21/01/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant Navnath Duryodhan Golande ITA No. 5567/MUM/2024 ambit of provisions of section 154 of the Act. Various courts of law have time and again held that any controversial issue cannot be entertained u/s 154 of the Act, as the same cannot be stated to be \"mistake apparent on record\". Therefore, there is no scope in interfering with the Order and it is upheld.” We find that the assessee was seeking rectification of the tax credit in respect of two parties. The only plea of the assessee is to grant credit of TDS as per the form No. 26AS. In our opinion, that the tax credit has to be granted as per f No. 26AS i.e. the TDS credit which is verified by the Department deductors and the issue falls within the parameters of of the Act i.e. rectification. Accordingly, we set aside f the Ld. CIT(A) on the issue-in-dispute. The matter is restored back to the Ld. Assessing Officer for verification of the claim of the assessee for credit of TDS as per Form No. 26AS and allow in accordance with law. The grounds of appeal of the assessee are accordingly allowed. In the result, the appeal of the assessee is allowed. nounced in the open Court on 21/01/2025. Sd/ (RAHUL CHAUDHARY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : Navnath Duryodhan Golande 3 ITA No. 5567/MUM/2024 ambit of provisions of section 154 of the Act. Various courts of law have time and again held that any controversial issue cannot be entertained u/s 154 of the be \"mistake no scope in We find that the assessee was seeking rectification of the tax credit in respect of two parties. The only plea of the assessee is to orm No. 26AS. In our opinion, there redit has to be granted as per form No. 26AS i.e. the TDS credit which is verified by the Department issue falls within the parameters of dingly, we set aside the . The matter is restored back to the Ld. Assessing Officer for verification of the claim of the assessee for credit of TDS as per Form No. 26AS and grounds of appeal of the assessee In the result, the appeal of the assessee is allowed. /01/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Navnath Duryodhan Golande ITA No. 5567/MUM/2024 BY ORDER, (Assistant Registrar) ITAT, Mumbai Navnath Duryodhan Golande 4 ITA No. 5567/MUM/2024 BY ORDER, (Assistant Registrar) ITAT, Mumbai "