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Facts
The assessee's appeal was directed against the order of the CIT(A) which upheld an intimation u/s 143(1) and denied TDS credit. The assessee had declared significantly lower receipts in their return of income compared to their Form 26AS, leading to the denial of TDS claim.
Held
The Tribunal noted that the assessee failed to justify how all receipts were accounted for in the return of income and remained non-responsive even after multiple opportunities. Therefore, the Tribunal set aside the order of the CIT(A) for denovo adjudication, providing the assessee with three effective opportunities to file necessary documents.
Key Issues
Whether the assessee's failure to declare all receipts and subsequent non-responsiveness warrants denial of TDS credit, and if an opportunity for denovo adjudication should be granted.
Sections Cited
143(1), 250, 37BA, 147, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
Assessment Year: 2023-24 Shivalay Properties, V The DCIT, Office No.27, Saujay Garden, s Circle-5, Pune. Parshwa Building, 12 Mukund Nagar, Pune – 411037. Maharashtra. PAN: ABGFS7797D Appellant/ Assessee Respondent / Revenue Assessee by Shri Kishore Phadke – AR(Virtual) Revenue by Smt. Sonal L Sonkavde –Addl.CIT(DR) Date of hearing 03/06/2025 Date of pronouncement 23/06/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the assessee directed against the order of ld.Addl./Joint Commissioner of Income Tax(Appeal), Mysore under section 250 of the Income Tax Act, 1961 dated 10.01.2025for the A.Y.2023-24 emanating from order under section 143(1) of the Act, dated 09.01.2024. The Assessee has raised the following grounds of appeal :
“1. The learned CIT(A), AddI/JCIT (A), Mysore "hereafter referred as CIT(A)"; erred in law and on facts in upholding intimation u/s 143(1) dated 06/08/2021 passed by, DCIT, CPC Bangalore thereby denying the TDS credit of Rs. 14,05,622/-
Without prejudice to the above ground of appeal, any balance TDS Credit that is not allowed to be utilised during the PY 2022-23 should be allowed to be carried forward to the subsequent year
Appellant craves leave to add, alter, clarify, explain, modify, delete any or all of the grounds of appeal, and to seek any just and fair relief.”
Submission of ld.AR : 2. The ld.Authorised Representative(ld.AR) for the Assessee submitted that ld.CIT(A) has dismissed the appeal of the assessee because of the reason that Assessee failed to justify how all the receipts would be accounted in the Return of Income. However, Ld.AR submitted that Assessee could not file submission, hence, one more opportunity may kindly provided.
Submission of ld.Departmental Representative(ld.DR) : 3. The ld.DR for the Revenue relied on the order of Assessing Officer(AO) and ld.CIT(A)[NFAC].
Findings & Analysis : 4. We have heard both the parties and perused the records. In this case, it was prayed by the ld.AR that one more opportunity may be provided. The relevant paragraph 7 of ld.CIT(A)’s order is reproduced here as under : “7. The appellant raised three grounds of appeal. First two grounds of appeal no.1 and 2 are related to restriction of TDS claim. On perusal of the material available on records, total receipts available in 26AS was Rs.14,46,14,100/-. Out of this, the appellant declared Rs.40,52,274/- as total receipts in the return of income. As the appellant failed to declare all receipts in the return of income, rule 37BA was attracted and proportionate TDS of Rs.40,522/- was correctly allowed by the AO. During the appellant proceedings, the appellant failed to justify how all the receipts would be accounted in the return of income as the appellant remained non responsive even after allowing multiple opportunities. In view of this, the restriction of TDS in the order u/s.143(1) is upheld and the grounds of appeal are dismissed.” 4.1 Thus, it is observed that since assessee failed to file details, ld.CIT(A) confirmed the disallowance. Therefore, in the interest of justice, we set-aside the order of ld.CIT(A) to ld.CIT(A) for denovo adjudication. The ld.CIT(A) shall provide opportunity to the assessee. Assessee shall file all necessary documents before the ld.CIT(A) within Three effective opportunities. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 23 June, 2025.