PRATHAM LOGISTICS PRIVATE LIMITED,POWAI, MUMBAI vs. COMMISSIONER OF INCOME TAX APPEAL, DELHI

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ITA 4482/MUM/2024Status: DisposedITAT Mumbai29 January 2025AY 2023-24Bench: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHRI (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the matter to the file of the AO. If Apollo Tyres Ltd. corrects the TDS returns as claimed by the assessee and there is a reduction in receipts after reconciliation, the AO is directed to grant proportionate TDS credit.

What were the facts?

The assessee filed an appeal against an order relating to an adjustment made under Section 143(1) for AY 2023-24. The issue concerned the proportionate disallowance of TDS credit, where the AO allowed credit of Rs.62,01,227/- instead of Rs.65,42,724/- due to an alleged discrepancy in gross receipts shown in Form 26AS by Apollo Tyres Ltd.

What were the issues?

Whether the assessee is entitled to full proportionate TDS credit when there is a discrepancy in gross receipts between Form 26AS and Profit & Loss account due to an error by a third party (Apollo Tyres Ltd.)?

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154,Section 194C,Section 194Q,Section 194JV

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH

For Respondent: Shri Mahesh Pamnani
Hearing: 13/01/2025Pronounced: 29/01/2025

आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 24/07/2024 passed by Addl. JCIT-3, Delhi in relation to the adjustment made u/s. 143(1) for the A.Y.2023-24. 2. In various grounds of appeal assessee has only raised one issue, i.e., proportionate disallowance of income tax TDS deducted at Rs.3,41,497/-. It has been stated that the ld. AO has allowed proportionate TDS credit of Rs.62,01,227/- instead Pratham Logistics Pvt. Ltd. of Rs.65,42,724/- on the ground that one of its client had shown excess receipts in Form 26AS. It was stated that during the relevant year Apollo Tyres Ltd., has wrongly shown excess amount in TDS in its returns that TDS deduction u/s.194C, 194Q and 194JV due to which the assessee’s gross receipts as of 26AS appeared at Rs.49.26 Crores instead of Rs.29.93 Crores. Later on Apollo Tyres Ltd has partly corrected the TDS returns and reduced the excess amounts shown by them. After that ld. AO has also allowed TDS credit proportionately in the rectification order u/s.154 of the Act.

3.

Before us ld. Counsel submitted that the assessee has requested Apollo Tyres Ltd., for the entire correction of their TDS return after which there would not be any difference in the gross receipts of the assessee as per the profit and loss account and as per 26AS for the year 2023-24. The ld. AR has given the following summary:- Amt.(Rs) a) Gross receipts in 26AS after correction done by Apollo Tyres Ltd 30.72 crore b) Gross receipts as per Profit and Loss 29.92 crore c) Correction pending by Apollo Tyres Ltd 0.80 lakh

4.

On these facts the matter is restored back to the file of the ld. AO and if Apollo Tyres carries out the correction as claimed by the assessee and if there is any reduction of the receipts after reconciliation then ld. AO should grant proportionate TDS credit.

Order pronounced on 29th January, 2025.

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