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Income Tax Appellate Tribunal, DELHI BENCH: ‘D’ NEW DELHI
Before: SHRI SAKTIJIT DEY & DR. B.R.R. KUMAR
This is an appeal by the assessee against order dated 18.08.2020 of learned Commissioner of Income Tax (Appeals)-42, Delhi, pertaining to assessment year 2018-19.
The dispute in the present appeal is confined to non-grant of TDS credit.
2.1 Briefly the facts are, the assessee is an individual having residential status of “Not Ordinarily Resident”. As it appears from the facts on record, the assessee is a salaried employee of M/s.
Yaskawa India Pvt. Ltd. having office at Bengaluru. For the assessment year under dispute, the assessee filed his return of income declaring income of Rs.1,25,04,980/-. In the return of income, the assessee claimed credit for TDS amounting to Rs.42,21,551/-. While processing the return of income filed by the assessee, the Centralized Processing Centre (CPC), Bengaluru did not grant credit for TDS amounting to Rs.3,48,701/- on the allegation of mismatch with Form 26AS. Against the intimation issued under section 143(1) of the Income-tax Act, 1961 (for short ‘the Act’), the assessee preferred an appeal before learned Commissioner (Appeals). However, learned Commissioner (Appeals) did not entertain assessee’s claim.
We have considered rival submissions and perused the materials on record. The TDS credits which the CPC has disallowed are as under:
Sl. TAN of the Amt. claimed Amt. Amount Amount AY Valid No. Deductor/PAN under TAX of Claimed Matched Mismatch (7) Tan (1) of the Buyer Deductor/PAN of (4) (5) (6) Flag (2) the buyer in (8) Column. (3) 1. BLRYO0735A YASKAWA INDIA 40,42,85 38,72,850 1,70,009 2018 Y PRIVATE LIMITED 9 2. BLREO3625G EMPLOYEES 1,78,692 0 1,78,692 2018 Y PROVIDENT FUND ORGANISATION 2 | P a g e
On going through the reasoning of CPC as reproduced in the order of learned Commissioner (Appeals), it is observed, TDS credit for the aforesaid amounts was not granted to the assessee on the allegation that the credits claimed in the return of income are not reflected in Form 26AS statement. However, on a perusal of Form 26AS statement submitted before us, it is observed, the amount of Rs.1,78,692/-, being the TDS deducted by Employees Provident Fund organization is reflected in From 26AS. Similarly, TDS amounting to Rs.1,70,009/- deducted by the employer M/s.
Yaskawa India Pvt. Ltd. is also reflected in Form 26AS with TAN number. Thus, the allegation of the CPC that these two amounts are not reflected in Form 26AS, prima facie, appears to be perfunctory. In any case of the matter, since, tax has been deducted at source on the income of the assessee, full credit of such TDS has to be given to the assessee in spite of the fact that the assessee might have committed some technical/typographical error in the return of income, as alleged by learned Commissioner (Appeals). This is for the reason that the assessee cannot be deprived of getting the benefit of tax genuinely deducted on his behalf. 3 | P a g e
In view of the aforesaid, we restore the issue to the Assessing Officer for the limited purpose of factually verifying assessee’s claim qua the amounts reflected in Form 26AS and allow credit for the TDS amount reflected therein. Grounds are allowed for statistical purposes.
In the result, the appeal is allowed for statistical purposes.
Order pronounced in the open court on 31st October, 2022