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Facts
The assessee's return of income was processed by CPC, and credit for certain TDS/TCS was not granted. The assessee filed a rectification application under Section 154, which was rejected by the Assessing Officer. The Ld. CIT(A) upheld the rejection, stating that the issue was controversial and beyond the scope of Section 154.
Held
The Tribunal held that granting TDS credit as per Form No. 26AS is not a controversial issue and falls within the scope of Section 154. Therefore, the order of the Ld. CIT(A) was set aside.
Key Issues
Whether denial of TDS credit, verifiable through Form No. 26AS, is a mistake apparent from record rectifiable under Section 154.
Sections Cited
154, 143(1)(a)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “H (SMC
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
This appeal by the assessee is directed against order dated 28.09.2024 passed by the National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds:
1) The Assessing Officer has erred in rejecting the appeal 1) The Assessing Officer has erred in rejecting the appeal 1) The Assessing Officer has erred in rejecting the appeal against the rejection order u/s.154 duly passed against the rejection order u/s.154 duly passed u/s.143(1)(a) u/s.143(1)(a) by the CPC., be confirmed, stating the view, CPC. Cannot by the CPC., be confirmed, stating the view, CPC. Cannot by the CPC., be confirmed, stating the view, CPC. Cannot review the matter and not give the tax effect though it is review the matter and not give the tax effect though it is review the matter and not give the tax effect though it is reflecting on the site of the CPC. on portal for tax deducted and reflecting on the site of the CPC. on portal for tax deducted and reflecting on the site of the CPC. on portal for tax deducted and TDS being deducted and the assessee eligible for such tax TDS being deducted and the assessee eligible for such tax TDS being deducted and the assessee eligible for such tax credit. 2) Thus, it is an apparent mistake on record that, tax credit not 2) Thus, it is an apparent mistake on record that, tax credit not 2) Thus, it is an apparent mistake on record that, tax credit not properly granted be an apparent mistake on record u/s.154. properly granted be an apparent mistake on record u/s.154. properly granted be an apparent mistake on record u/s.154. The appellant not filed the revision application be considered The appellant not filed the revision application be considered The appellant not filed the revision application be considered at your stage. at your stage.
We have heard rival submission of the partie We have heard rival submission of the parties and perused the s and perused the relevant material on record. In the case, the return of income filed relevant material on record. In the case, the return of income filed relevant material on record. In the case, the return of income filed by the assessee was processed by the CPC and order u/s 143(1)(a) by the assessee was processed by the CPC and order u/s 143(1)(a) by the assessee was processed by the CPC and order u/s 143(1)(a) of the Income-tax Act, 1961 (in short ‘the Act’) was passed tax Act, 1961 (in short ‘the Act’) was passed tax Act, 1961 (in short ‘the Act’) was passed. In said order, credit of certain credit of certain tax deducted at source( ed at source(TDS) and tax collected at source(TCS TCS) was not granted to the assessee. Therefore, was not granted to the assessee. Therefore, the assessee filed rectification rectification application u/s 154 of the Act application u/s 154 of the Act seeking credit of the relevant TDS/TCS. The assessee filed copy of seeking credit of the relevant TDS/TCS. The assessee filed copy of seeking credit of the relevant TDS/TCS. The assessee filed copy of the updated form No. 26AS in s orm No. 26AS in support of claim of the credit of the upport of claim of the credit of the TDS. But the Ld. Assessing Officer rejected the rectification request TDS. But the Ld. Assessing Officer rejected the rectification request TDS. But the Ld. Assessing Officer rejected the rectification request of the assessee.
2.1 On further appeal, the Ld. CIT(A) held that u/s 154 only On further appeal, the Ld. CIT(A) held that u/s 154 only On further appeal, the Ld. CIT(A) held that u/s 154 only mistake apparent on the record could be rectified and not an issue mistake apparent on the record could be rectified and not an issue mistake apparent on the record could be rectified and not an issue which require any long ch require any long drwan process of reasoning. The Ld. CIT(A) process of reasoning. The Ld. CIT(A) finally concluded as under: finally concluded as under:
“The above discussion makes it clear that the issue is a The above discussion makes it clear that the issue is a The above discussion makes it clear that the issue is a controversial one and is yet to attain finality. Therefore, controversial one and is yet to attain finality. Therefore, controversial one and is yet to attain finality. Therefore, being a controversial issue, this issue is beyon being a controversial issue, this issue is beyon being a controversial issue, this issue is beyond the ambit of provisions of section 154 of the Act. Various ambit of provisions of section 154 of the Act. Various ambit of provisions of section 154 of the Act. Various courts of law have time and again held that any courts of law have time and again held that any courts of law have time and again held that any controversial issue cannot be entertained u/s 154 of the controversial issue cannot be entertained u/s 154 of the controversial issue cannot be entertained u/s 154 of the Act, as the same cannot be stated to Act, as the same cannot be stated to be "mistake be "mistake apparent on record". Therefore, there is apparent on record". Therefore, there is no scope in no scope in interfering with the Order and it is upheld. interfering with the Order and it is upheld.” 2.2 We find that the assessee was seeking rectification of the tax We find that the assessee was seeking rectification of the tax We find that the assessee was seeking rectification of the tax credit in respect of two parties. The only plea of the assessee is to credit in respect of two parties. The only plea of the assessee is to credit in respect of two parties. The only plea of the assessee is to grant credit of TDS as per the f grant credit of TDS as per the form No. 26AS. In our opinion, orm No. 26AS. In our opinion, there is no controversy that that the tax credit has to be granted as per f redit has to be granted as per form No. 26AS i.e. the TDS credit which is verified by the Department No. 26AS i.e. the TDS credit which is verified by the Department No. 26AS i.e. the TDS credit which is verified by the Department from the tax deductors and the deductors and the issue falls within the parameters of issue falls within the parameters of section 154 of the Act i.e. rectification. Accor of the Act i.e. rectification. Accordingly, we set aside dingly, we set aside the finding of the Ld. CIT(A) on the issue f the Ld. CIT(A) on the issue-in-dispute. The matter is . The matter is restored back to the Ld. Assessing Officer for verification of the restored back to the Ld. Assessing Officer for verification of the restored back to the Ld. Assessing Officer for verification of the claim of the assessee for credit of TDS as per Form No. 26AS and claim of the assessee for credit of TDS as per Form No. 26AS and claim of the assessee for credit of TDS as per Form No. 26AS and allow in accordance with law. The allow in accordance with law. The grounds of appeal of the assessee grounds of appeal of the assessee are accordingly allowed. are accordingly allowed.
In the result, the appeal of the assessee is allowed. 3. In the result, the appeal of the assessee is allowed. In the result, the appeal of the assessee is allowed.