TATA DIGITAL PRIVATE LIMITED,MUMBAI V. DCIT 1(3)(1), MUMBAI

ITA 3122/MUM/2025

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Tata Digital Private Limited filed an appeal against the order of the CIT(A) which denied them the credit for TDS of Rs. 27,88,922 deducted by M/s. AIX Connect Pvt Ltd for the Assessment Year 2024-25. The CIT(A) had upheld the CPC's decision, citing that the conditions for claiming TDS credit as per Rule 37BA were not satisfied. The Tribunal, however, found that the assessee had offered the corresponding income for tax in the year under consideration and that the TDS was deposited by the deductor in the subsequent year, thus meriting the credit in the year claimed. The Tribunal directed the Assessing Officer to verify the claim and allow the credit accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717650 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2024-2025
• Appeal Filed On: 02-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HEMANSHU JOSHI
• Assessee Lawyers: SUKHSAGAR SYAL
• Keywords: Opportunity of being heard; Principle of natural justice; TDS; FORM 26AS
• Section: 244A

Judgement Text

"आयकर अपीलीय न्यायाधिकरण न्यायपीठ, म ुंबई| IN THE INCOME-TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सुं./ITA No.3122/MUM/2025 (नििाारण वर्ा / Assessment Year: 2024-25) Tata Digital Private Limited 1st Floor, Army & Navy Building, 148 M G Road, Fort, Mumbai 400001 v/s. बिाम Deputy Commissioner of Income Tax-1(3)(1), Mumbai 5th Floor, Aayakar Bhavan, M G Road, Mumbai 400020 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAHCT2205N Appellant/अपीलार्थी .. Respondent/प्रनिवादी निर्ााररती की ओर से /Assessee by: Shri Sukhsagar Syal राजस्व की ओर से /Revenue by: Shri. Hemanshu Joshi, SR DR स िवाई की िारीख / Date of Hearing 08.07.2025 घोर्णा की िारीख/Date of Pronouncement 14.08.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the ADDL/JCIT (A)-2 Chennai [Ld. CIT(A)], dated 05.03.2025 passed u/s. 250 of the Income Tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year 2024-25. 2. The assessee has raised the following grounds in this appeal. “General Ground: 1. On the facts and the circumstances of the case and in law, the order passed by the Hon’ble Learned Addl / JCIT (A)-2 (hereinafter referred as “Ld CIT(A)”) is bad in law and invalid. Printed from counselvise.com P a g e | 2 ITA No 3122/Mum/2025 AY 20224-25 Tata Digital Private Limited 2. Ground 2 – Denial of Tax Deducted at Source (‘TDS’) credit of Rs. 27,88,922/- 2.1 The Ld CIT(A) erred in denying the TDS credit of aforementioned amount without providing reasonable opportunity of being heard through virtual hearing to the Appellant, thereby violating the principles of natural justice and additionally not following the point 12(3) of the Notification no. 139 of 2021 dated 28 December,2021 laying down the requirement to provide an opportunity to the Appellant for virtual hearing. 2.2 On the facts and the circumstances of the case and in law, Ld CIT(A) grossly erred in denying the TDS credit of Rs. 27,88,922/- pertaining to M/s. AIX Connect Private Limited [Formerly known as M/s. AirAsia (India) Limited]. 2.3 In doing so, he failed to appreciate that: - Appellant has claimed TDS credit as per the provision of section 199 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) read with Rule 37BA of the Income Tax Rules, 1962 - Appellant has already offered to tax the corresponding income pertaining to M/s. AIX Connect Private Limited in its return of income for the year under consideration. - The said TDS of Rs. 27,88,922/- deducted by M/s. AIX Connect Private Limited has been deposited by them in the subsequent year and the same is reflected in Form 26AS for the said year. - Appellant has Claimed the TDS of Rs. 27,88,922/- in its return of income for the Assessment year 2024-25 and accordingly, credit of TDS on the said income needs to be given Assessment Year 2024-25 only i.e. year under consideration. 3. Ground 3- Interest u/s 244A of the Act Suitable direction may be given to AO to calculate interest u/s. 244A of the Act on TDS credit of Rs. 27,88,922/- (which was denied while processing the return u/s. 143(1) of the Act) from April 2024 to actual date of refund. The above grounds are without prejudice to each other. The Appellant craves leave to add and/or to alter, amend, rescind or modify the grounds of appeal or produce further documents, facts and evidence before or at the time of hearing with your honours.” 3. Although assessee has taken 5 grounds of appeal but sole substantive issue relates to denial of credit of TDS Rs. 27,88,922/- for AY 2024-25. 4. Brief facts of the case are that assessee filed its return declaring total loss of Rs. 11,48,78,53,452/- and claimed refund of Rs. 11,25,01,230/-. The return was processed u/s. 143(1) and the CPC issued an intimation dated 24.12.2024, Printed from counselvise.com P a g e | 3 ITA No 3122/Mum/2025 AY 20224-25 Tata Digital Private Limited accepting the returned loss, but allowing refund of only Rs. 10,94,04,264/- by granting short TDS credit of Rs. 30,96,966/-. TDS claim disallowed pertains to M/s. AIX Connect Pvt Ltd. (Rs. 27,88,922/-) and M/s. MO Engage India Pvt Ltd. (Rs. 3,07,976/-). Aggrieved with the action of the CPC, the assessee preferred an appeal before Ld. CIT(A). It was contended by the assessee that it had already offered the corresponding income pertaining to M/s. AIX Connect Pvt Ltd in its return of income for AY 2024-25. The corresponding TDS of Rs. 27,88,922/- deducted by M/s. AIX Connect Pvt Ltd. has also been deposited by them in the subsequent year. With regard to the short credit of TDS of Rs. 3,07,976/- the assessee withdrew the ground of appeal as the said deductor had revised its TDS return against the credit note issued in the subsequent year. Ld. CIT(A) after referring to Rule 37BA held that the conditions prescribed therein for claiming TDS credit are not satisfied and hence, upheld the action of the CPC in denying the TDS credit. However, Ld. CIT(A) observed that w.e.f. 01.10.2023 in view of the provisions of Section 155(20) of the Act, the Assessee may consider filing of application for relief. Against the dismissal of the appeal the assessee has filed present appeal by the Ld. CIT(A) before the Tribunal. 5. We have heard the rival submissions and perused the applicable provisions. Undisputedly, the assessee is entitled to the credit of TDS of Rs. 27,88,922/- deducted by M/s. AIX Connect Pvt ltd. It is the assessee’s case that the corresponding income has already been offered for tax during the year under consideration and therefore, the said TDS deducted by M/s. AIX Connect Printed from counselvise.com P a g e | 4 ITA No 3122/Mum/2025 AY 20224-25 Tata Digital Private Limited Pvt Ltd and deposited by them in the subsequent year should be considered in AY 2024-25 and accordingly, credit of TDS should be allowed in the year under consideration under these circumstances, we deem it appropriate to restore the matter to the Ld. jurisdictional Assessing Officer (JAO) for verification of assessee’s claim and allow credit for the impugned TDS in the relevant year in which income has been brought to tax. Needless to add the assessees should be given adequate opportunity to submit requisite details and evidences in support of its claim. 6. In the result, appeal of the assessee is allowed for the statistical purposes. Order pronounced in the open court on 14.08.2025. SdSd/-/- SSd/-d/- ANIKESH BANERJEE RENU JAUHRI (न्यानयक सदस्य/JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 14.08.2025 दिव्य रमेश न ुंिग वकर/ स्टेनो Printed from counselvise.com P a g e | 5 ITA No 3122/Mum/2025 AY 20224-25 Tata Digital Private Limited आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. Printed from counselvise.com "