GIR MOVERS PVT. LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 13(1),, KOLKATA

Brief facts of the case are that the return of income for AY 2018- 19 was filed on 30.09.2018 which was processed u/s 143(1) of the Act on 11.06.2019 and a refund of ₹78,03,778/- and interest on refund of ₹5,85,278/- with the total refund of ₹83,89,060/- was credited to the assessee’s account on 24.06.2019. Thereafter, the case was selected for scrutiny and the assessment order u/s 143(3) of the Act was passed on 01.02.2021 assessing the income as per the return. However, the assessee had received advance money for a transfer of property in respect of which ₹5 Lakh was deducted as TDS u/s 194-IB of the Act. The transfer subsequently did not materialize and a deed of cancellation was executed which was submitted during the course of the assessment proceedings along with the necessary explanation. The Assessing Officer (hereinafter referred to as Ld. 'AO') was also satisfied with the explanation and even though the case was selected on account of capital gains/income on sale of property being one of the reasons besides the expenditure being personal in nature, no addition was made. However, the interest u/s 244A of the Act was also modified and the rectification application filed by the assessee was not allowed. Aggrieved with the rectification order, the assessee filed an appeal before the Ld. Addl/JCIT(A) who dismissed the appeal of the assessee by giving his findings as under: “7.2 The material available on record, including the return of income, order under section 143(3), computation of income, Form 26AS for the year, rectification request under section 154, the order passed thereon, and the submissions furnished with Form 35, have been examined. The assessment was completed under section 143(3) on 01.02.2021 accepting the returned income without any modification. The appellant thereafter sought rectification stating that TDS of 5,00,000 was deducted by the buyer under section 194IB on advance received for a property transfer that did not ultimately materialise, and that such TDS had not been claimed in the return.

3 The form 26AS for Assessment Year 2018-19 has been verified in entirety. The record does not contain any entry of TDS under section 194IB or any TDS credit of 5,00,000 in the name of the appellant. The section specifically relevant for such transactions, namely Part F of Form 26AS (containing TDS on rent u/s 194IB/immovable property u/s 194IA), clearly states "No Transactions Present" Further, no TDS certificate, Form 26QB, challan, acknowledgment number, deductor details or any documentary evidence substantiating deposit of such TDS has been produced at any stage. Therefore, the claim of TDS does not find corroboration in the departmental records.

4 Under section 199 read with Rule 37BA of the Income-tax Rules, 1962, credit for tax deducted at source can be allowed only when such tax is actually deducted and reflected in the statement filed by the deductor, and consequently in Form 26AS. In the absence of any corresponding entry in Form 26AS, and in the absence of any evidence substantiating that TDS of 5,00,000 was deposited to the credit of the Government, no credit can be granted.

0 Based on the verification of Form 26AShment records, and the statutory framework governing TDS credit, there is no material supporting the appellant's claim of TDS of 5,00,000 under section 194IB. Accordingly, the grounds raised do not merit acceptance and the appeal stands dismissed.”

Aggrieved with the order of the Ld. Addl/JCIT(A), the assessee has filed the appeal before the Tribunal.

None appeared on behalf of the assessee and the case was heard with the assistance of the Ld. DR.

The Ld. DR relied upon the order of the Ld. Addl/JCIT(A). However, the Bench was of the view that since the assessee was claiming that TDS was made, an opportunity to furnish evidence before the Ld. AO may be allowed to the assessee since the TDS was not being reflected in the Form No. 26QB which was filed. The deduction is to be made u/s 194-IB of the Act while section 194-I refers to TDS on rent. Hence, in the interest of justice and fair play, the order of the Ld. Addl/JCIT(A) is hereby set aside and the matter is remanded to the Ld. AO. The assessee shall file necessary evidence in support of the claim GIR Movers Pvt. Ltd. that the deduction for the TDS on the transaction of receipt of advance was made by the transferee which claim shall be verified by the Ld. AO and thereafter, the Ld. AO is directed to allow the claim as per law.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 5th May, 2026. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 05.05.2026 Bidhan (Sr. P.S.)

Addl/JCIT(A)-1, Hyderabad.

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order