MAHESH CHANDRA BANSAL,BASERI DISTT. DHOLPUR RAJASTHAN vs. INCOME TAX OFFICER, BHARATPUR, RAJASTHAN

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “SMC” BENCH, JAIPUR BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI T. R. SENTHIL KUMAR, JUDICIAL MEMBER ITA No. 1409/JPR/2025 (Assessment Year:2012-13)

Mahesh Chandra Bansal Vs. ITO Community Health Center Ward 1 Baseri Distt. Dholpur Ayakar Bhawan Rajasthan Govardhan Gate Bharatpur

�थायीलेखासं./जीआइआरसं./PAN/GIR No:ACOPB 3544 J Appellant .. Respondent Appellant by : Sh. Aditya Bansal, CA Respondent by : Mrs. Aarti Rawat, JCIT Date of Hearing 21.07.2026 Date of Pronouncement 30.07.2026 O R D E R Per Annapurna Gupta, AM:- The present appeal has been filed by the assessee against the order passed by the Office of the Commissioner of Income Tax, Appeal Addl./JCIT(A) Mysore(hereinafter referred to as “Ld. CIT(A)”), dated

P a g e | 2 ITA No. 1409/JPR/2025 Mahesh Chandra Bansal 12.08.2025 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). 2. The grounds raised by the assessee read as under:- 1. The learned ADDL/JCIT (Appeals), Mysore (hereinafter referred to as ["the CIT (A) ") is erred in facts and law while passing the order.

PRAYER:

In view of the above, the appellant very humbly prays:

P a g e | 3 ITA No. 1409/JPR/2025 Mahesh Chandra Bansal

1.1. That TDS credit of Rs 19215.00 shall be given in the assessment year 2012-13. 1.2. That any interest U/s 234 B, 234C, and 220 shall be deleted. 1.3. That a due refund along with interest be issued to the appellant. 3. The solitary issue in the present appeal relates to denial of grant of benefit of tax deducted at source TDS on the income earned by the assessee by way of salary. The assessee is a senior citizen, Doctor, working as an Employee in Community Health Centre Baseri, District Dholpur. The assessee filed return of income for the A.Y. 2012-13 on 30/07/2012 declaring total income of Rs. 5,74,830/-. The return was processed u/s. 143(1) of the I.T. Act, 1961 on 06/06/2013 determining total income at Rs. 5,74,830/-;the same as declared in the return of income. However, the TDS credit claimed by the assessee was denied to the tune of Rs.31,215/- by applying Rule 37BA of Income Tax Rules,1962. The assessee filed multiple rectification applications u/s 154 and against the last rectification application u/s 154 dated 05/10/23 order was passed by the AO on 22/11/2023 wherein TDS credit of Rs. 19,215/- was not given noting that salary for the month of January 2012 and February 2012 of the impugned year was received by the assessee in May 2012 ,i.e. the succeeding Financial Year F.Y 2012-13 relevant to A.Y 2013-14 ,i.e. and TDS thereon was also deducted in the same month . 4. Aggrieved by the said order, the assessee went in appeal before the first appellate authority who upheld the order of the AO.

P a g e | 4 ITA No. 1409/JPR/2025 Mahesh Chandra Bansal 5. The order of the AO passed u/s 154 reveals that the credit of TDS was denied by the AO noting that the salary for the month of January and February was received by the assessee in the month of May 2012 and TDS thereon was also deduced in the Month of May 2012 i.e. FY 2012-13 relevant to AY 2013-14 which was also appearing in Form 26AS. The AO stated that since the TDS amounting to Rs.19,215/- was deducted in the Financial Year therefore, the assessee was required to claim the same in the succeeding assessment year in which it was deducted i.e. AY 2013-14, accordingly, the application of the assessee u/s 154 was rejected by the AO.His findings in this regard are as under:- On perusal of detail/documents i.e. month wise salary, Form no.16, letter dated 31.10.2022 issued by the P.H.C. Sarmathura and detail of 26AS etc, it is found that the salary for the month of January, 2012 &Feb, 2012 was received by assessee in the month of May, 2012 and TDS thereon was also deducted in the month of May, 2012 i.e. FY 2012-13 relevant to AY 2013-14 which is also appearing in 26AS. Since, the TDS amounting to Rs.19,215/-which was deducted in next financial year i.e. 2012-13, therefore, the assessee is required to claim the same in the FY 2012-13 relevant to AY 2013-14. Therefore, the application u/s 154 of the Act filed by assessee is hereby rejected.

P a g e | 5 ITA No. 1409/JPR/2025 Mahesh Chandra Bansal and TDS deducted thereon in the next year which has been accordingly reflected in Form 26AS of the assessee for the next year. 8. At this juncture, the ld. Counsel for the assessee was asked whether he had returned salary for January 2012 and February 2012 in the return of income for the impugned year, in response to which he responded by pointing out that this fact was brought to the notice of the AO in response to his application filed u/s 154 reproduced at page 4 of the Ld. CIT(A)’sorder as under:- 14. That in response to the above application U/s 154 the assessee received the notice dated 25/10/2023 vide DIN: ITBA/COM/F/17/2023-24/1057335818(1), asking tothe submit month wise salary received for the F.Y. 2011-12 (Assessment Year 2012-13). 15. That the assessee had submitted its response on the income tax portal and submitted below mentioned details/information in response to notice dt 25/10/2023 before LAO vide its letter dt 14/11/2023. a. month wise salary summary of Rs. 5,67,531/- as shown in Form 16 of the Assessee by the DDO P.H.C. Sarmathura for the F.Y. 2011-12 (A.Υ. 2012-13). b. month wise salary drawn of Rs. 4,72,573/- Map from the month Mar 2011 toDec 2011, as received by the assessee from DDO P.H.C. Basedi for the F.Y. 2011-12 (Α.Υ. 2012- 13). c. salary drawn of Rs.94,978/- and its pay bill for the month of Jan 2012 to Feb 2012 as received by the assessee from DDO PHC Sarmathura for the F.Y. 2011-12 (Α.Υ. 2012- 13). d. Form 16 as received by the assessee from DDO PHC Sarmathura for the F.Y. 2011-12 (Α.Υ. 2012 13). 9. Referring to the above, he pointed out that the assessee had submitted to the AO that the salary returned to tax as per Form 16 included the salary for the month of January and February 2012. It is evident therefore that, the assessee had returned its income by way of

P a g e | 6 ITA No. 1409/JPR/2025 Mahesh Chandra Bansal salary in the impugned year for the month of January and February 2012. There was no reason therefore to disallow the assessee’s claim of TDS deducted thereon in the impugned year as per Section 199 of the Act read with Rule 37BA of the Income Tax Rules 1962. 10. The credit for tax deducted at source and paid to the Central Government as per section 199 of the Act r.w Rules 37BA of the Income tax Rules,1962 is to be given for the assessment year for which the income is assessable. The relevant provisions of Section 199 of the Act read as under:- ………. Credit for tax deducted. 199. (1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of the owner of property or of the unit-holder, or of the shareholder, as the case may be. (2) Any sum referred to in sub-section (1A) of section 192 and paid to the Central Government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made. (3) The Board may, for the purposes of giving credit in respect of tax deducted or tax paid in terms of the provisions of this Chapter, make such rules as may be necessary, including the rules for the purposes of giving credit to a person other than those referred to in sub-section (1) and sub-section (2) and also the assessment year for which such credit may be given. ……… 11. The relevant provisions of Rule 37BA Sub-Rule (3) are as under:- ………. Credit for tax deducted at source for the purposes of section 199. 37BA. ……… (3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) ……

P a g e | 7 ITA No. 1409/JPR/2025 Mahesh Chandra Bansal 12. It is abundantly clear, therefore that, as per law since the assessee was entitled to credit of TDS in the year in which the income had been returned/assessed to tax and in the facts of the present case, since the assessee had returned his salary for the month of January and February 2012, in the impugned year itself i.e. AY 2012-13, he was entitled to credit of TDS deducted thereon. 13. We therefore, direct the AO to grant the assessee the credit of tax deducted at source pertaining to the salary earned for January and February 2012 amounting to Rs.19,215/-. 14. In effect, the appeal of the assessee is allowed. Order pronounced in the Open Court on 30.07.2026

Sd/- Sd/- (T.R. Senthil Kumar) (Annapurna Gupta) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 30.07.2026 Mittali, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

By Order, Asst. Registrar ITAT, Jaipur