RAJENDER KUMAR LEGHA,SRIBIJAY NAGAR vs. INCOME TAX OFFICER, SURATGARH

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, HON’BLE JUDICIAL MEMBER ITA No. 1038/Jodh/2025 (Assessment Year – 2022-23) Rajender Kumar Legha Income Tax Officer, New Dhan mandi, Sri Bijey Suratgarh, District Nagar, District Sriganganagar. Sriganganagar PAN No. ABPPL6416P Assessee by Shri Shafi Mohammad Chouhan Advocate (Virtually) Revenue by Shri Vaibhav Agarwal Addl. CIT-DR (Virtual) Date of Hearing 13 / 05 / 2026. Date of Pronouncement 29 / 07 / 2026. ORDER PER: SUDHIR PAREEK, J.M. The aforetitled appeal has been preferred by the assessee/appellant against the order dated 08.10.2026 u/s 154 of the Income Tax Act, 1961 (in short referred as ‘the Act’) passed by Commissioner of Income Tax Appeal, ADDL/JCIT (A)-9 Mumbai [for the sake of convenience, hereinafter referred to as CIT(A)] by which appeal filed by the assessee was dismissed.

2 ITA No. 1038/Jodh/2025 Asst. Year: 2022-23 3. Reiterating the grounds of appeal, the Ld. AR expressed grievance that the Ld. CPC as well as Ld. CIT(A) erroneously disallowed the claim of TDS of Rs. 42,331/- deducted under Section 194Q which is available in form 26AS and denied the eligibility of the assessee. It is also submitted that as per circular no. 452 dated 17.03.1986 the sales made for his principle is not included in the turnover of the agent, hence the turnover declared by the assessee is correct and he is also eligible for the benefit of TDS as available in form 26AS, therefore, the act of the Ld. CPC and Ld. CIT(A) is unjustified and against the circular of CBDT.

3 ITA No. 1038/Jodh/2025 Asst. Year: 2022-23 Assessment Year 2022-23 wherein the coordinate bench has observed as under: 7. Having heard both the sides and perusal of record, we find that AO/CPC has not allowed the full claim of the TDS due to the mismatch of total receipt in ITR and Form-26AS. In this respect, appellant in his submission before Ld. CIT(A) and before us has submitted that he is a "Kaccha Arhatia" registered with Rajasthan Krishi Upaj Mandi and works as a middleman. As per the Circular No. 452(F.No. 201/3/85-/T(A- //)], dated 17.03.1986) the aforesaid Kaccha Arhatia acts only as an agent of his constituent and never acts as a principal. 8. The JCIT(A) has not appreciated the facts of the case in right perspective. Considering the peculiar facts of the present cases, the matter is required to be restored to the AO for limited purpose with the direction to examine the contents of the Form 26AS at the time of giving appeal effect and give credit of TDS mismatch claimed subject to provision of section 199 of the I. T. Act and rule 37BA of the I. T. Rules. Thus, the AO has to verify the total receipts shown in 26AS and ITR and give credit of TDS to the appellant if the corresponding income has been offered either by the assessee, the Kachha Adatiya or its principle by for taxation in his income tax return in the relevant year after due verification.

4 ITA No. 1038/Jodh/2025 Asst. Year: 2022-23 9. Without prejuaice to above, it is pertinent to mention that appellant is being a kachha arahtia involved in selling crops on behalf of farmers and therefore, only gross commission has to be considered for the purpose of computing the turnover in the light of aforementioned CBDT Circular 452 of 1986 dated 17.03.1986 while computing tax liability. It is clarified that the short credit of TDS granted in respect of TDS deducted against his own is dependent upon the filing of TDS statement by the deductor as mandated u/s 19 and rule 37BA(1). If there is any mismatch in the TDS claim as per the return vis-a-vis the TDS statement filed by the deductor. The assessee has been allowed due liberty by the LD. JCIT(A) that the TDS statement can be rectified by getting appropriate corrected TDS statement issued filed by the deductor. 10 Considering the factual matrix of the case and the CBDT Circular 452 of 1986 dated 17.03.1986, we direct the AO to examine and verify the contents of the Form 26AS at the time of giving appeal effect and give credit of TDS mismatch if any, to the appellant assesses. 5. Per contra, the Ld. DR relied upon the impugned order passed by the Ld. CIT(A).

5 ITA No. 1038/Jodh/2025 Asst. Year: 2022-23 we direct the AO to examine and verify the contents of the Form 26AS at the time of giving appeal effect and give credit of TDS mismatch if any, to the appellant assessee and accordingly the appeal of the assessee deserves to be allowed.

Order pronounced on 29 / 07 / 2026 under Rule 34(4) of the Income Tax Appellate Tribunal Rules,1963.

Sd/- Sd/- (DR. MITHA LAL MEENA) (SUDHIR PAREEK) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 29 / 07 / 2026. Pritesh Vaishnav PS True Copy Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File BY ORDER,