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Facts
The assessee, engaged in works contract business, filed a return of income under Section 139(4) for AY 2020-21. The CPC processed the return under Section 143(1)(a) and allowed TDS credit of Rs.2,91,767/- instead of Rs.9,39,803/- claimed by the assessee.
Held
The Tribunal noted that the learned CIT(A) had remitted the issue to the AO. Since the assessee claimed TDS as per Form 26AS and receipts were offered in the return, the Tribunal directed the AO to follow the directions of the learned CIT(A).
Key Issues
Dispute regarding the full credit of TDS as claimed by the assessee in the return of income versus the amount allowed by the CPC during processing.
Sections Cited
139(4), 44AD, 139(9), 37BA, 44AB, 143(1)(a)
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Income Tax Appellate Tribunal, “SMC” BENCH : BANGALORE
Before: SHRI. LAXMI PRASAD SAHU & SHRI. PRAKASH CHAND YADAV
Per Laxmi Prasad Sahu, Accountant Member :
This appeal filed by the assessee is against the Order passed by thelearnedCIT(A) vide DIN and Order No.ITBA/APL/S/250/2024- 25/1071368358(1) dated 19.12.2024, challenging the Order by the CPC not granting full TDS credit as claimed in the return of income.
Briefly stated, the facts of the case are that assessee is an individual, engaged in the business of works contract. The assessee is regularly assessed in ACIT, Circle – 6(2)(1), Bangalore, and filed the return of income on 28.03.2021 under section 139(4) of the Act, declaring income of Rs.48,54,200/- under section
The total gross receipts is Rs.5,10,96,882/- including GST. The assessee had not maintained books of accounts as prescribed under the Act and did not get the accounts added under section 44AB of the Act. However, the assessee estimated income @ 9.5% of the total contract receipts including GST in order to comply with the filing of return of income. The contract receipts and TDS deducted were appearing in Form No.26AS also. The assessee claimed TDS credit as per Form No.26AS and filed return of income. While processing the return under section 143(1)(a) of the Act, dated 30.10.2021, along with credit of TDS of Rs.2,91,767/ was allowed- instead of TDS of Rs.9,39,803/- as claimed in the return of income.
Page 3 of 4 4. Aggrieved from the above Order, assessee filed appeal before the learned CIT(A). The learned CIT(A), after examining the details, observed at para 5.4 as under: “5.4 Thus, considering the facts of the case, the AO is directed to grant the appellant an opportunity of being heard, in the light of the decision of Hon'ble Delhi High Court of its own motion V/s CIT 352 ITR 273 and Instructions of CBDT. New Delhi and verify the TDS made in the appellant's case which is relatable to the income offered for taxation for A.Y. 2020-21 with respect to TDS claimed by the appellant and Form 26AS of the appellant and any other material which is relevant for the verification of TDS credit and thereafter grant the credit of TDS, if the claim of the appellant is found to be correct.”
Aggrieved from the above Order, assessee filed appeal before the Tribunal. The learned Counsel reiterated the submissions made before the lower authorities and statement of facts submitted before the CIT(A).
On the other hand, the learned DR relied on the Order of the CIT(A).
Considering the rival submissions and on perusal of the entire material on record and Orders of the authorities below, we noted that the learned CIT(A) has remitted this issue to the AO as noted supra. Since the assessee has claimed TDS as per Form No.26AS and receipts are also shown in the income tax return, accordingly, we direct the AO to follow the direction of the learned CIT(A).
In the result, appeal filed by the assessee is allowed for statistical purposes.