DEEPSHIKHA TRADING COMPANY PVT. LTD.,KOLKATA vs. I.T.O., WARD - 6(2), KOLKATA

Facts

The assessee, Deepshikha Trading Company Pvt. Ltd. (amalgamated company), appealed against the non-granting of TDS credit of INR 1,23,331 and advance tax of INR 1,75,000 pertaining to the amalgamating company, GMB Investments Pvt. Ltd., in its AY 2018-19 assessment under Section 143(3). The Ld. CIT(A) dismissed the appeal as infructuous, holding that the cause of action arose from the Section 143(1) intimation, not the Section 143(3) order.

Held

The Tribunal ruled that the amalgamated company is eligible for the tax credits of the amalgamating company, as the income corresponding to these credits was taxed in the assessee's hands. It found the CIT(A)'s dismissal of the appeal as infructuous incorrect, stating that the demand from Section 143(1) was subsumed by the Section 143(3) order, and directed the AO to allow the claimed TDS and advance tax credits.

Key Issues

Whether an amalgamated company can claim TDS and advance tax credit of the amalgamating company; and whether the CIT(A) correctly dismissed the appeal as infructuous by holding the cause of action lay against the Section 143(1) intimation instead of the Section 143(3) assessment order.