RAVI PARKESH ,SIRSA V. ITO WARD - 1 , SIRSA

ITA 1152/CHANDI/2025

AI Insights

The case revolves around an appeal by Shri Ravi Parkesh against the order of the Commissioner of Income Tax (Appeals), which upheld a rectification intimation by the Centralized Processing Center (CPC) that allowed only a partial TDS credit to the assessee for the Assessment Year 2022-23. The assessee, acting as a Kachha Arhtia (commission agent), argued that the TDS deducted by traders on transactions with farmers should be fully credited, despite these receipts not being included in the gross receipts offered to tax. The Tribunal agreed with the assessee's position, emphasizing that the TDS deducted from payments received by the assessee on behalf of farmers should be credited in full, as these amounts were effectively the assessee's income.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827040 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2022-2023
• Appeal Filed On: 08-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR LD. VIRTUAL
• Assessee Lawyers: KARTIK GARG LD. VIRTUAL
• Keywords: Business income; TDS; Rectification of order; FORM 26AS
• Section: 154

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH VIRUTAL HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं. / ITA No.1152/CHANDI/2025 (िनधाŊरणवषŊ / Assessment Year: 2022-23) Shri Ravi Parkesh 34, New Anaj Mandi, Ellenabad Sirsa, Haryana - 125102 बनाम/ Vs. ITO Ward-1 Aaykar Bhawan, Huda Sirsa Haryana - 125055 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AIJPP-3741-N (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Kartik Garg (Advocate) – Ld. AR (Virtual) ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR (Virtual) सुनवाईकीतारीख/Date of Hearing : 07-01-2026 घोषणाकीतारीख /Date of Pronouncement : 07-01-2026 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2022- 23 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 15-07-2025 in the matter of an rectification intimation issued by CPC u/s 154 of the Act on 11-03- 2023. The sole grievance of the assessee is allowance of TDS credit. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. Upon perusal of rectification order dated 11-03-2023, it could be seen that CPC allowed TDS credit of Rs.28,975/- as against Rs.3,59,762/- as claimed by the assessee. The same was on the Printed from counselvise.com 2 ground that in terms of Rule 37BA, total receipts as offered by the assessee to tax was less than receipts as reflected in Form 26AS by various deductor while deducting TDS on various transactions with the assessee. During first appeal, it was explained by the assessee that it acted as Kachha Arhtia (Commission agent) and the assessee was providing services to farmers for sale of their crops to traders etc. The payment so received is transferred to farmers against commission. As per CBDT Circular No.452 dated 17-03-1986, only commission income would constitute business receipts of the assessee. However, Ld. CIT(A) rejected the said claim and upheld the action of CPC. Aggrieved, the assessee is in further appeal before us. 3. From assessee’s pleadings, it could be seen that the assessee has acted as Kaccha Arhtia only. The assessee receives payment from traders on behalf of the farmers against commission income. The commission receipts become the income of the assessee. However, few of the traders have deducted TDS u/s 194Q against gross receipts which are not the receipts for the assessee. These receipts would never be offered as revenue receipts. Nevertheless, TDS has been deducted against assessee’s payment and it is the assessee’s money which has been deducted by the traders. Therefore, the credit of the same would certainly be available to the assessee. The turnover or other financial results are not in dispute. The provisions under which TDS has been deducted would not hold much relevance in such a case. Therefore, I direct Ld. AO to grant full TDS credit to the assessee as available. Printed from counselvise.com 3 4. The appeal stands allowed. Order pronounced on 07th January, 2026. -Sd- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER Dated: 07-01-2026 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "