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Facts
The assessee claimed TDS credit for Rs.1,41,482/- related to earlier years, which was reflected in Form 26AS. The assessee had offered the income in the relevant Assessment Year but could not claim TDS credit due to late reporting by the deductee. However, the TDS appeared in Form 26AS for the impugned Assessment Year.
Held
The Tribunal noted that the issue required verification at the Assessing Officer (AO) level. Therefore, the matter was remitted back to the jurisdictional AO to provide a reasonable opportunity of being heard to the assessee and allow TDS credit as per law.
Key Issues
Whether the assessee is entitled to TDS credit for amounts reflected in Form 26AS for the impugned assessment year, even if the TDS was reported late by the deductee in earlier years.
Sections Cited
143(1), 155(14)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI. LAXMI PRASAD SAHU & SHRI. SOUDARARAJAN K
ORDER Per Laxmi Prasad Sahu, Accountant Member :
This appeal filed by the assessee is against the Order passed by the Addl/JCIT(A)-3, Mumbai, for the Assessment Year 2022-23.
The sole reason raised by the assessee in this appeal is short grant of TDS claimed for earlier years which is reflected in From No.26AS in the relevant AY amounting to Rs.1,41,482/-. Assessee filed return of income on 07.11.2022 and claimed TDS of Rs.29,57,554/- whereas while processing the return under section 143(1) of the Act, the TDS was granted only for Rs.28,16,072/-. Accordingly, short credit was allowed to the assessee.
Page 2 of 3 3. Aggrieved from the above Order, assessee filed appeal before the First Appellate Authority (FAA). The FAA also did not allow full TDS credit as claimed in the income tax return as per Form 26AS. There is no dispute that the income has already been offered in the relevant Assessment Year but for late reporting of the TDS by deductee in Form 26AS the income was offered but the respective TDS could not be claimed as tax paid. The learned Counsel submitted that during the impugned Assessment Year, the said TDS is appearing in Form 26AS and the assessee has claimed as tax paid. Accordingly, he requested that an opportunity should be given to the assessee to reconcile the same.
The learned DR relied on the Order of the lower authorities. The learned DR also referred to section 155(14) of the Act.
Considering the rival submissions, we noted that as per submission of the assessee, the income was offered in the relevant Assessment Year but it was not reported in Form 26AS. Assessee could not claim TDS in the respective Assessment Year. However, in the current Assessment Year, the TDS has been reported in Form No.26AS. Assessee has claimed it as tax paid. Since the issue requires verification at the level of AO, therefore, considering the facts of the case and in the interest of justice, we remitting the issue back to the file of jurisdictional AO. The jurisdictional AO is directed to give reasonable opportunity of being heard to the assessee and allow TDS credit as per law. Assessee is directed provide necessary documents to substantiate its case and not seek unnecessary adjournment in the matter for speedy disposal of the case.
Pronounced in the court on the date mentioned on the caption page.