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Facts
The assessee's sole grievance was that the CPC, in its rectification order, allowed TDS credit of Rs. 6,68,304/- whereas the actual TDS credit as per Form 26AS was Rs. 9,66,285/-. The CIT(A) had dismissed the appeal as infructuous, noting a subsequent CPC order that allegedly granted the correct TDS credit.
Held
The Tribunal noted that the CPC order dated 02.05.2023 was not on record and therefore, restored the issue to the file of the JAO for verification of the prepaid tax credit allowed and to decide in accordance with law.
Key Issues
Whether the CIT(A) erred in dismissing the appeal as infructuous without verifying the correct TDS credit allowed by the CPC and if the CPC order rectifying the TDS credit was properly considered.
Sections Cited
250, 154
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Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: Dr. MANISH BORAD & MS. ASTHA CHANDRA
आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of the assessee is directed against the order of Ld. CIT Appeal (NFAC) u/s 250 of the Income-tax Act, 1961 dated 21.10.2024 which is arising out of Order passed u/s.154 of the Act dated 24.01.2023.
Assessee has raised following grounds of appeal:-
1. The Ld. CIT(A) NFAC has erred in passing order u/s 250 not considered rectification order passed u/s 154 dated 17.08.2023 by CPC in which CPC has wrongly considered Pre-paid Taxes (i.e TDS).
2. The Ld. CIT(A) NFAC has erred on facts and in law in passed order u/s 250 without considering our reply and confirming the action of Centralized Processing Center for wrongly considered Pre-paid Taxes (i.e TDS) of Rs. 6,68,304/- and created demand of Rs.2,99,470/- in Rectification Order u/s 154, but actual prepaid taxes (ie TDS) of Rs. 9,66,285/- as per 26AS.
3. The assessee craves to amend alter and modify any of the grounds of appeal.
3. When the case was called for none appeared on behalf of the assessee. However considering the smallness of the issue relating to TDS credit, we proceed to adjudicate the appeal with the assistance of Ld. DR who has supported the order of the Ld. CIT(A). We have heard Ld. DR and perused the record placed before us. Sole grievance of the assessee is that the CPC in its rectification order u/s 154 of the Act dated 24.01.2023 has allowed the TDS to the tune of Rs. 6,68,304/- as against actual TDS credit as per Form 26AS at Rs. 9,66,285/- 4. However on perusal the Para 5.2 of the impugned order, we note that Ld. CIT(A) NFAC has referred to the subsequent order of the CPC u/s 154 of the Act dated 02.05.2023 as per which TDS credit of Rs. 9,66,285/- has been allowed to the assessee. It is also noticed that in Form No. 35, the assessee has referred to the rectification order u/s 154 of the Act, dated 24.01.2023, but thereafter assessee filed another rectification application u/s 154 of the Act on 27.01.2023 and CPC vide order dated 02.05.2023 allowed the assessee’s application and granted TDS credit of Rs. 9,66,285/- as claimed by the assessee. Based on this fact that the CPC has rectified the demand Ld. CIT(A) dismissed the appeal as infructuous.
5. Assessee is now in appeal before this Tribunal, and considering the observation of the CIT(A) in Para 5.2 of the impugned order referring to CPC order u/s 154 of the Act dated 02.05.2023 having allowed TDS credit of Rs. 9,66,285/- we note that order of CPC dated 02.05.2023 is not available on record. Therefore we deem it proper to restore this issue to the file of Ld. JAO who shall verify the status of the prepaid tax credit allowed to the assessee for A.Y. 2021-22 in the CPC order u/s 154 dated 02.05.2023 and then decide in accordance with law alongwith taking into consideration the TDS credit appearing in Form 26AS issued by the Department under the PAN of the assessee.
For carrying out this exercise Ld. JAO shall provide reasonable opportunity of hearing to the assessee. 6. In the result appeal of the assessee is allowed for statistical purposes. Order pronounced on this 18th day of March, 2025.