M/S SHAH & CHHEDA HOMES PRIVATE LTD,MUMBAI vs. COMMISSIONER OF INCOME TAX (NFAC)-NFAC, MUMBAI

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ITA 156/MUM/2023Status: DisposedITAT Mumbai27 March 2023AY 2020-214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(A) had not adjudicated the additional grounds of appeal filed by the assessee regarding the TDS credit. The matter was restored to the CIT(A) for fresh adjudication.

What were the facts?

The assessee claimed TDS of Rs. 1,98,337/- in its return for AY 2020-21, which was not granted credit by the AO. This TDS appeared in the Form 26AS for AY 2021-22, not the year of sale.

What were the issues?

Whether the assessee is eligible for TDS credit in the year the income was offered to tax, even if the TDS appears in a subsequent year's Form 26AS. Whether the CIT(A) properly adjudicated the additional grounds of appeal.

Which sections of the Income-tax Act were involved?

Section 194IA,Section 199

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Hearing: 16.03.2023Pronounced: 27.03.2023

O R D E R Per Amarjit Singh (AM): The present appeal filed by the assesse is directed against the order passed by the NFAC, Delhi dated 21.11.2022 for A.Y. 2020-21. The assesse has raised the following grounds before us: “Ground 1. The Honourable CIT(A) NFAC has erred in not deciding the additional grounds of appeal submitted during the 1"appeal hearing proceedings on 03-11-2022 vide ack no 775223051031122. The appellant has claimed TDS of Rs.1,98,337/- u/s 1911A in his ROI which is not appearing in Form 26AS for the year under appeal but appearing in Form 26AS of subsequent assessment year ie AY 2021-2022 Relied Claimed:

1.

P a g e | M/s Shah & Chheda Homes Pvt. Ltd. Vs. CIT(A) NFAC The appellant is eligible for its TDS claim of Rs.1,98,337/- in the year under appeal and the same may please be allowed. Ground 2 The Ld. AO (ADIT, CPC) Bangalore has erred in not giving credit of TDS of Rs.1,98,337/- claimed in the year under appeal as per the provisions of section 199 and income tax rule 37BA. The appellant company states that the gross income corresponding to TDS was offered to tax in AY 2020-21 and did not claim the same TDS again in AY 2021- 2022 even though the said TDS is appearing in the Form 26AS of AY 2021-2022 Copy of Form 26AS for AY 2020-21 and AY 2021-2022 is enclosed for your reference. (Refer Annexure 1) Relied Claimed: The appellant company humbly requests your honour to allow its valid TDS claim of Rs.1,98,337/- in AY 2020-21 as corresponding income was offered to tax in the same year. Ground 3 The appellant company prays for your leave to add, alter & amend the above ground of appeal, if necessary.”

2. Fact in brief is that assessee has filed return of income declaring total income of Rs.1,58,36,990/- on 15.01.2021. The CPC has processed the return of income u/s 143(1) of the Act on 24.12.2021. The assessee stated that claimed TDS of Rs.1,98,337/- u/s 194IA as it had sold flat No. 1101/- in its Mahabir Ornate Project Rs.2,67,12,000/- to Nikita Aggarwal who had deducted the TDS u/s 194IA of Rs.1,98,337/-. The assessee claimed that it had shown the entire sale proceeds in the profit and loss account for the year ended 31.03.2020 and also claimed TDS on the sale of flat as referred above. However, while processing the return of income filed by the assesse the credit of said TDS was not granted to the assessee during the year under consideration. The assessee also submitted that said TDS was appearing in 26AS of F.Y. 2020-21 (assessment year 2021-22) and not in the year on sale of flat i.e assessment year 2020-21. The assssee has P a g e | M/s Shah & Chheda Homes Pvt. Ltd. Vs. CIT(A) NFAC claimed the TDS in the year in which the gross sale were offered to tax in the assessment year 2020-21.

3.

Heard both the sides and perused the material on record. During the course of appellate proceedings before us the ld. Counsel submitted that assessee has filed additional ground of appeal before the NFAC on 03.11.2022, however, the same was not adjudicated by the ld. CIT(A). In this regard, the ld. Counsel has also filed copy of additional ground of appeal filed before the ld. CIT(A) on the issue of not giving credit of TDS deducted u/s 194IA of Rs.1,98,337/-. We have perused the order u/s 250 of the Act passed by the ld. CIT(A) on 24.12.2021 and noticed that the additional ground of appeal filed by the ld. Counsel as referred above stating that credit of TDS claimed in the return of income has not been adjudicated by the ld. CIT(A). In the light of the above facts and circumstances we restore this matter to the file of the ld. CIT(A) for adjudicating the additional grounds of appeal on merit after affording reasonable opportunity to the assessee. Therefore, this ground of appeal of the assessee is allowed for statistical purpose.

4.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 27.03.2023

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