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Facts
The Revenue appealed against orders allowing the assessee full credit for TDS. The assessee, a private limited company, had its TDS credit restricted by the CPC, which was subsequently allowed by the CIT(A) after considering additional evidence. The Revenue argued that the CIT(A) erred in allowing additional evidence and not appreciating that full TDS credit implies offering entire revenue.
Held
The Tribunal held that the CIT(A)'s order directing the Assessing Officer to allow full credit of TDS after verification was not erroneous. Since the issue was restored to the AO for verification and allowing the credit, the Revenue had no grievance and its grounds of appeal lacked merit.
Key Issues
Whether the CIT(A) erred in allowing TDS credit based on additional evidence and whether the entire revenue should be offered if full TDS credit is claimed.
Sections Cited
143(1), 199, 37BA
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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & Ms. ASTHA CHANDRA
all the appeals filed by the Revenue and the Cross Objections filed by the assessee were heard together and are being disposed of by this common order.
ITA No.691/PUN/2025 (A.Y. 2021-22)
Facts of the case, in brief, are that the assessee is a private limited company incorporated to build, construct, operate and maintain the container port terminal under the license agreement with the Govt. of India through JNPT. It filed its return of income on 14.03.2022 declaring total income of Rs.44,51,67,190/- and claiming TDS credit of Rs.14,53,99,188/-. The return was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and an intimation dated 22.09.2022 was issued wherein TDS credit was restricted to Rs.9,07,11,353/-.
Against the order of CPC, the assessee filed an appeal before the Ld. Addl./JCIT(A) wherein it was stated that the CPC has erred in restricting the TDS credit by erroneously assuming that the revenue reported in Form 26AS is higher than the revenue reported in financials and the return of income. It was argued that the assessee is eligible for full credit for TDS of Rs.14,97,56,442/- as reflected in Form 26AS since the revenue shown in the financials are more than the revenue reflected in Form 26AS.
Based on the arguments advanced by the assessee, the Ld. Addl./JCIT(A) held that the restriction of TDS credit in the case of the assessee vide intimation dated 143(1) of the Act dated 22.09.2022 is erroneous and not sustainable. He however, directed the Assessing Officer to allow the full credit of TDS of Rs.14,97,56,442/- as reflected in Form 26AS after due verification of proper TDS and also to verify as to whether the income related to the gross receipt is in accordance with provisions of section 199 r.w.s. Rule 37BA.
Aggrieved with such order of the Ld. Addl./JCIT(A) the Revenue is in appeal by raising the following grounds: a. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in allowing the appeal of the assessee on the basis of additional evidences produced by the assesse during appellate proceedings for the first time which were never produced before the A.O. b. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the when the TDS credit is claimed entirely as per the provisions of Act, the entire revenue should have been offered by the assessee. c. The appellant prays that the order of the CIT(A) may be set aside and that of the assessing Officer be restored. d. The appellant craves leave to add, alter, amend and modify any of the above grounds of appeal either before or at the time of hearing of the appeal, if considered necessary.
We have heard the rival arguments made by both the sides, perused the intimation of the Assessing Officer (CPC) and the order of Ld. Addl./JCIT(A). We have also gone through the paper book filed on behalf of both sides and considered the various decisions cited before us by both sides. A perusal of the order of the Ld. Addl./JCIT(A) shows that he has restored the matter to the file of the Assessing Officer with a direction to allow full credit of TDS of Rs.14,97,56,442/- as reflected in Form 26AS for assessment year 2021-22 after due verification of proper TDS and whether the income related to the gross receipt in accordance with section 199 read with Rule 37BA. The relevant part of the order of the Ld. Addl./JCIT(A) reads as under: “6.3 In view of the above facts and circumstances, the restriction of TDS credit in the case of the appellant, vide intimation u/s 143(1) dated 22.09.2022 is held to be erroneous and not sustainable. In view of the documentary evidence furnished in support of TDS made the AO is directed to allow full credit of TDS of Rs.14,97,56,442/- as reflected in Form 26AS for the A.Y. 2021-22 after due verification of proper TDS and whether the income related to the gross receipt in accordance with Section 199 read with Rule 378A”
Under these circumstances, since the Ld. Addl./JCIT(A) has restored the issue to the file of the Assessing Officer for due verification and thereafter only allow full credit of TDS of Rs.14,97,56,442/-, therefore, the Revenue should not have any grievance. Under these circumstances, we do not find any merit in the grounds raised by the Revenue. Accordingly, the same are dismissed.
& 693/PUN/2025 (A.Ys.2022-23 & 2023-24)
After hearing both the sides, we find the grounds raised by the Revenue in the above 2 appeals are identical to the grounds raised by the Revenue in ITA No.691/PUN/2025. We have already decided the issue and dismissed the grounds raised in ITA No.691/PUN/2025. Following similar reasonings, we dismiss the grounds raised by the Revenue.
CO Nos.46 to 48/PUN/2025
The Ld. Counsel for the assessee did not press the three COs filed by the assessee for which the Ld. DR has no objection. Hence, we dismiss the three COs filed by the assessee as ‘not pressed’.
In the result, all the three appeals filed by the Revenue and the three COs filed by the assessee are dismissed.
Order pronounced in the open Court on 15th December, 2025.
Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 15th December, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: अपील र्थी / The Appellant; 1. 2. प्रत्यर्थी / The Respondent 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune
S.No. Details Date Initials Designation 1 Draft dictated on 11.12.2025 Sr. PS/PS 2 Draft placed before author 15.12.2025 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Office 9 Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order