AJIT CONSTRUCTIONS,LUCKNOW vs. DY. COMMISSIONER OF INCOME TAX-3, LUCKNOW

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order of learned CIT(A)/ ADDL/JCIT(A)-4, Mumbai, dated 07.11.2025, for the AY 2021-22. The assessee has raised the following grounds of appeal:

“1. Because on the facts and in the circumstances of the case the order of Ld. CIT(A) is bad in law as the order passed by the Ld. AO without considering the TDS amount to the tune of Rs.1,21,50,079/- as claimed by the assessee in the return of income filed for the relevant assessment year i.e., AY2021-22 without considering the carried forward amount of TDS of Rs.1,21,50,079/- by the assessee eligible to be claimed in the assessment year 2018-19.

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(B) In this case, intimation under section 143(1) of the Income Tax Act, 1961 (the Act) was issued by Income Tax Department. The assessee filed rectification application under section 154 of the Act which was rejected by Income Tax Department. The assessee’s appeal against the order dated 02.12.2022 rejecting the assessee’s aforesaid application for rectification under section 154 of the Act was dismissed by the First Appellate Authority (FAA) vide impugned appellate order dated 07.11.2025. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 02.12.2022. The grounds of appeal are as under:

“1. Because on the facts and in the circumstances of the case the order of Ld. CIT(A) is bad in law as the order passed by the Ld. AO without considering the TDS amount to the tune of Rs.1,21,50,079/- as claimed by the assessee in the return of income filed for the relevant assessment year i.e., AY2021-22 without considering the carried forward amount of TDS of Rs.1,21,50,079/- by the assessee eligible to be claimed in the assessment year 2018-19. 2. Because on the facts and in the circumstances of the case the order the order of Ld. CIT(A) is bad in law as the order passed by the Ld. AO without considering the fact that assessee has not claimed TDS amounting to Rs.1,21,50,079/-in the AY 2018-19. The said fact is evident, from perusal of Revised return filed u/s 139(5) of the Income Tax Act, 1961 vide Acknowledgement Number. 324739510180320 dated 18.03.2020 wherein in

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Point No15B(1) of the ITR Form, assessee has clearly mentioned TDS amounting to Rs.1,21,50,079/-being carried forward. 3. Because on the facts and in the circumstance of the case, the order of Ld. CIT(Appeals) has been passed in absolute violation of the principles of Natural Justice, without providing adequate opportunity of being heard and therefore deserves to be declared a nullity.”

(C) At the time of hearing, the learned Counsel for the assessee submitted that the assessee’s claim for Tax Deducted at Source (TDS) has been wrongly denied in the aforesaid intimation under section 143(1) of the Act, aforesaid order under section 154 of the Act and the aforesaid impugned appellate order of FAA dated 07.11.2025. He submitted that the Assessing Officer should be directed to grant credit for TDS in accordance with law. As regards the refusal of the FAA to condone the delay in filing of the appeal before the FAA, the Learned A. R. submitted that there was sufficient cause for delay filing of appeal before the FAA. He drew our attention to the reasons discussed in the impugned appellate order of the learned CIT(A). The learned DR expressed no objection to this direction being given to the Assessing Officer, to grant credit to the assessee for TDS in accordance with law.

(D) Both sides have been heard. Materials on record have been perused. In view of the reasons for delay in filing of the appeal before the FAA, as discussed in the aforesaid impugned appellate order dated 07.11.2025 of FAA, it is found that there was reasonable cause for delay in filing of the appeal before the FAA; and the FAA erred in not condoning the delay in filing of the appeal.

(E) In view of the foregoing discussion, the impugned appellate order of learned CIT(A) is set-aside and the dispute regarding assessee’s claim for

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credit of TDS, is remanded to the file of the Assessing Officer with the direction to grant credit for TDS in accordance with law.

(F) All the grounds of appeal in present appeal are treated as disposed off in accordance with the aforesaid directions. For statistical purposes, the appeal is partly allowed.

(Order was pronounced in the open court on 06/05/2026)

Sd/- (KUL BHARAT) (ANADEE NATH MISSHRA) Vice-President Accountant Member Date: 06/05/2026 SK, Sr.PS

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A)

Senior Private Secretary Income Tax Appellate Tribunal Lucknow