AJIT KUMAR,BANGALORE vs. ACIT, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

Per Laxmi Prasad Sahu, Accountant Member : This appeal filed by the assessee is against the final assessment order passed by the CIT(A), under ection 147 r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter called ‘the Act’), for the Assessment Year 2015-16. 2. Assessee is a NRI individual and did not file return of income for the impugned Assessment Year. His case was reopened as the assessee was flagged under the verification module of Insight Portal (in accordance with risk management strategy). From the Insight Portal, it was observed that during the Assessment Year, assessee had made the following transactions:

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3. But it was also observed that assessee did not file his return of income.
Accordingly, a notice under section 148A(d) of the Act, was issued to the assessee on 29.04.2022, after obtaining necessary approval. In response to the notice, assessee filed return of income on 08.07.2022 declaring total income of Rs.5,04,279/- and assessee claimed refund of Rs.2,63,670/-. Notice under section 143(2) of the Act was issued to the assessee on 27.06.2023. Thereafter, other statutory notices were issued on different dates. During the course of reassessment proceedings, it was observed that the assessee had purchased immovable property in 2008 for a consideration of Rs.21,72,722/- as land cost and paid Rs.78,76345/- as construction cost and the necessary documents were furnished. Loan document for Rs.79,44,679/- was also furnished. In the Assessment Year, the said property was sold at Rs.1,33,00,000/- but the assessee did not file return of income accordingly a show cause notice was issued tp the assessee stating that the assessee has not offered capital gain for tax. The assessee furnished reply on 14.12.2023 working of capital gain on sale of property which is the resulting loss of Rs.43,04,205/-. The AO observed that while filing response to the notice under section 148 of the Act, assessee claimed refund of Rs.2,63,670/-. The AO observed that the reassessment proceedings are for the benefit of the Revenue and not for the benefit of the assessee if the assessee had not stated while claiming by filing original return of income under section 139 of the Act assessee cannot make a claim the benefit under section 148 of the Act. In support of his view, he relied on the judgment of Hon’ble

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authorities have discussed the issue in detail and relied on the judgment.
Therefore, he requested that the Order of the lower authorities should be upheld.
7. Considering the rival submissions and on perusal of the entire material available on record and Orders of authorities below, we noted that have huge transaction incurred during the year, the assessee did not file his return of income and he filed return of income only in response to notice issued under section 148 of the Act and claimed refund of the TDS as appearing in Form
No.26AS. There is no dispute regarding TDS. The dispute here is only that the assessee is not eligible to claim refund in the return filed under section 148 of the Act. However, this TDS was paid by the deductor on behalf of the assessee as income tax payment which is part of the income appearing in the Form No.
26AS, therefore, it canot be said that it was a escapement of income,since, the TDS deduction was lying with the Income TAX Department . Therefore, whatever the TDS made and appearing as TDS credit in Form No.26AS is eligible to set off, if any tax liability arises and if there is any over and above the tax liability, the assessee is eligible for refund of excess income tax payment.
Therefore, the view taken by the lower authorities are not justified. The AO is directed to give TDS credit / tax refund after due verification.
8. In the result, appeal filed by the assessee is allowed.
Pronounced in the court on the date mentioned on the caption page. (SOUNDARARAJAN K)
Accountant Member
Bangalore,
Dated : 24.07.2025. /NS/*

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Copy to:
1. Appellant 2. Respondent 3. Pr.CIT4.CIT(A)
5. DR, ITAT, Bangalore.
By order