KUMAR CONSTRUCTION AND PROPERTIES PRIVATE LIMITED,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, PUNE

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ITA 2868/PUN/2026Status: DisposedITAT Pune13 October 2026AY 2021-223 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the limited argument presented by the assessee's counsel was that the Ld. CIT(A) erred in not granting the balance credit of TDS amounting to Rs.6,57,674/-. Upon perusal of the available material, the Tribunal found that the issue of the balance TDS credit of Rs.6,57,674/- required verification by the Jurisdictional Assessing Officer (JAO). With the consent of both parties, the Tribunal decided to restore this limited issue to the file of the JAO. The JAO was directed to verify the assessee's claim and decide the issue of balance TDS credit in accordance with the law, after providing the assessee with a reasonable opportunity of hearing. The Tribunal stated that only the ground argued by the assessee was allowed for statistical purposes. The Tribunal did not decide on the other grounds raised by the assessee.

What were the facts?

The assessee, Kumar Construction And Properties Private Limited, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Pune Bench 'A', challenging an order dated 28.04.2026 passed by the Ld. CIT(A), Pune-11 for the assessment year 2021-22. The appeal primarily concerned the dismissal of the assessee's grounds of appeal by the Ld. CIT(A) without adjudication on merits. Specifically, the assessee contended that the Ld. CIT(A) erred in dismissing a ground related to the short grant of prepaid taxes (TDS credit) as not maintainable, arguing that the issue arose from a suo motu order under section 154 passed by the CPC. The assessee also argued that the Ld. CIT(A) failed to adjudicate on the adjustment made by the CPC under section 154 read with section 143(1), which the assessee claimed was beyond the scope of rectification.

What were the issues?

1. Whether the Ld. CIT(A) erred in dismissing the assessee's ground regarding short grant of prepaid taxes (TDS credit) as not maintainable, on the premise that the issue did not arise from the suo motu order under section 154 passed by the CPC, thereby failing to adjudicate on merits? 2. Whether the Ld. CIT(A) erred in holding that the grievance pertained only to the original intimation under section 143(1), without appreciating that the issue of TDS credit was considered and partially modified in the order under section 154, thus forming part of the said order by virtue of the doctrine of merger? 3. Whether the Ld. CIT(A) erred in not adjudicating the assessee's ground challenging the adjustment made by the CPC in the intimation under section 154 read with section 143(1), on the basis that such adjustment does not constitute a 'mistake apparent from record' and is beyond the scope prescribed under the said section? Assessee's Contentions: The assessee argued that the Ld. CIT(A) erred in not granting the balance credit of TDS amounting to Rs.6,57,674/-. The assessee contended that the issue of TDS credit was considered and partially modified in the section 154 order, giving rise to a continuing cause of action. Furthermore, the assessee argued that the adjustment made by the CPC under section 154 read with section 143(1) was beyond the scope of rectification as it did not constitute a 'mistake apparent from record'. Revenue's Contentions: No specific contentions for the revenue were recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE

For Appellant: Shri Rajendra Agiwal
For Respondent: Shri Uodol Raj Singh
Hearing: 05.10.2026Pronounced: 13.10.2026

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2868/PUN/2026 िनधा�रण वष� / Assessment Year : 2021-22 Kumar Construction And Vs. ACIT, Central Circle-1(1), Properties Private Limited, Pune. 2413, 1st Floor, Kumar Capital, East Street, Camp, Pune- 411001. PAN : AAICK0938Q Appellant Respondent Assessee by : Shri Rajendra Agiwal Revenue by : Shri Uodol Raj Singh Date of hearing 05.10.2026 : Date of pronouncement 13.10.2026 : आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 28.04.2026 passed by Ld. CIT(A), Pune-11 [‘Ld. CIT(A)’] for the assessment year 2021-22. 2. The appellant has raised the following grounds of appeal :- “On the facts and in the circumstances of the case and in law, the learned CIT(A) has: Erroneous dismissal on maintainability and non-adjudication on merits 1. erred in dismissing the Ground No. 8 of short grant of prepaid taxes without adjudication on merits, as not maintainable, on the

2 ITA No.2868/PUN/2026 premise that the issue of short grant of TDS credit does not arise from the Suo motu order under section 154 passed by the CPC dated 25 September 2025 2. erred in holding that the grievance pertains only to the original intimation under section 143(1), without appreciating that the issue of TDS credit was considered, examined and partially modified in the impugned order under section 154, and hence forms part of the said order by virtue of doctrine of merger, giving rise to a continuing cause of action. Adjustment under section 154 r.w.s. 143(1) beyond scope of rectification 3. erred in not adjudicating the Appellant’s ground challenging the adjustment made by CPC in the intimation under section 154 r.w.s 143(1) of the Act. The Appellant submits that such adjustment does not constitute a ‘mistake apparent from record’ and prima-facie adjustment and is beyond the scope prescribed under the said section, and therefore bad in law and liable to be quashed.” The Appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal, at any time before or at, the time of hearing of the appeal, so as to enable the Hon’ble Tribunal to decide this appeal according to law.” 3. It was the limited argument of Ld. Counsel of the assessee that Ld. CIT(A) erred in not granting balance credit of TDS of Rs.6,57,674/- which was claimed by the assessee. On perusal of material available on record, we find that the issue of balance TDS credit of Rs.6,57,674/- needs to be verified by the Jurisdictional Assessing Officer and therefore, with the consent of both the parties, we deem it appropriate to restore the limited issue of balance TDS credit of Rs.6,57,674/- to the file of the Jurisdictional Assessing Officer with a direction to verify the claim of the assessee and decide the issue of balance TDS credit, if any, in accordance with law. Needless to say that the Jurisdictional

3 ITA No.2868/PUN/2026 Assessing Officer shall decide the above limited issue after providing reasonable opportunity of hearing to the assessee. Thus, only ground argued by the assessee is allowed for statistical purposes. 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 13th day of October, 2026. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; �दनांक / Dated : 13th October, 2026. Sujeet/DOC Sujeet Kumar Digitally signed by Sujeet Kumar Sharma Sharma Date: 2026.10.14 14:20:55 आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : +05'30' अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. Ld. CIT(A), Pune-11. 4. The Pr. CIT/CIT concerned. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “A” ब�च, 5. पुणे / DR, ITAT, “A” Bench, Pune. गाड� फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.

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