PROCESSIA PLM PRIVATE LIMITED,PUNE V. NATIONAL FACELESS ASSESSMENT CENTER, DELHI

ITA 2007/PUN/2025

AI Insights

The case involves Processia Plm Private Limited, which appealed against the order of the CIT(A)/NFAC that upheld the disallowance of credit for taxes deducted at source amounting to INR 15,18,619 by the National Faceless Assessment Centre, Delhi. The initial assessment was completed under section 143(3) read with section 144B of the Income Tax Act, 1961, where the credit for TDS was not allowed. The CIT(A) dismissed the appeal due to the absence of the assessee, attributed to a failure in communication from their previous counsel. The Tribunal found merit in the assessee's request for a remand to verify the TDS entries and provided directions for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827623 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 25-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARSHIT BARI
• Assessee Lawyers: NIDHI AGARWAL VIRTUAL
• Keywords: TDS; FORM 26AS
• Section: 143(3); 142(1); 244A

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.2007/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Processia Plm Private Limited, First Floor, Office No.102, Amar Apex Building, Amar Apex Condominium, Baner, Pune-411045. PAN : AAACT6811H Vs. Income Tax Department, National e-Assessment Centre, Delhi. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 12.06.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2018-19. 2. The appellant has raised the following grounds of appeal :- “Ground No. 1: On the facts and in the circumstances of the case and in law, the order under section 250 of the Income-tax Act,1961 ('the Act') passed by the Learned Commissioner of Income Tax (Appeals) ['Ld. CIT(A)'] on 12 June 2025 is bad in law. Assessee by : Ms. Nidhi Agarwal (Virtual) Revenue by : Shri Harshit Bari Date of hearing : 17.12.2025 Date of pronouncement : 05.01.2026 Printed from counselvise.com ITA No.2007/PUN/2025 2 Ground No. 2: On the facts and in the circumstances of the case and in law, in the order under section 250 of the Act, the Ld CIT(A) erred in upholding the disallowance of credit of taxes deducted at source amounting to INR 15,18,619 made by the National Faceless Assessment Centre, Delhi ('Learned AO') in the assessment order dated 17 April 2021 passed under section 143(3) read with section 144B of the Act. Ground No. 3: On the facts and circumstances of the case and in law, the Ld. AO and Ld. CIT(A) have erred in computing and confirming the interest receivable by the Appellant under section 244A of the Act without considering the credit of taxes deducted at source amounting to INR 15,18,619. Ground No 4: The Appellant craves leave to add to and/or to alter, amend, rescind, modify the grounds herein below or produce further documents before or at the time of hearing of this Appeal.” 3. Facts of the case, in brief, are that the assessee is a company and has filed its return of income on 30.03.2019 declaring income of Rs.Nil. The case was selected for scrutiny and notices u/s 143(2) and 142(1) respectively were issued to the assessee. After considering the submission of the assessee, the Assessing Officer vide order dated 17.04.2021 completed the assessment u/s 143(3) r.w.s. 144B of the IT Act and did not allowed the credit of tax deducted at source amounting to Rs.15,18,619/-. 4. Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A)/NFAC. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee. Printed from counselvise.com ITA No.2007/PUN/2025 3 5. It is the above order against which the assessee is in appeal before this Tribunal. 6. We have heard Ld. Counsels from both the side and perused the material available on record. In this regard, we find that Ld. CIT(A)/NFAC dismissed the appeal in the absence of any submission from the side of the assessee. We further find that admittedly Ld. CIT(A)/NFAC has issued various notices of hearing on the email mentioned in Form 35 Appeal Memo, however it was the contention of Ld. Counsel of the assessee that the email belongs to earlier counsel of the assessee who failed to inform the assessee regarding dates of hearing provided by Ld. CIT(A)/NFAC which resulted in unfortunate ex-parte order by Ld. CIT(A)/NFAC. It was the sole prayer of the counsel of the assessee that the matter may kindly be remanded back to the file of the Assessing Officer since the matter involves regarding verification of TDS entries in Form 26AS. Considering the totality of the facts of the case and in the interest of justice, we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC and remand the matter back to the file of the Assessing Officer with a direction to pass assessment order afresh and as per fact and law after providing reasonable Printed from counselvise.com ITA No.2007/PUN/2025 4 opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by the Assessing Officer in this regard and to produce relevant documents/ evidences/ submissions, if any, in support of grounds of appeal without taking any adjournment under any pretext, otherwise the Assessing Officer shall be at liberty to pass appropriate orders as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 05th day of January, 2026. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 05th January, 2026. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr.CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "