What did the Tribunal hold?

The Tribunal held that the assessee is entitled to the credit of TDS as it was duly appearing in Form 26AS. The issue was restored to the AO for verification and allowance after providing a hearing opportunity.

The assessee claimed TDS of Rs. 79,028/- as per Form 26AS, but this credit was not granted in the intimation under Section 143(1) without any reason. The CIT(A) dismissed the assessee's appeal as time-barred without deciding the merits of the TDS claim.

What were the issues?

Whether the assessee is entitled to TDS credit that was denied without reason and whether the appeal dismissal on limitation grounds was justified without adjudicating the merits.

Baid Trade Fina Pvt. Ltd. vs ITO | ITAT Kolkata 2022

Income Tax Appellate Tribunal, “SMC” BENCH: KOLKATA

Before: Shri Sanjay Garg & Shri Rajesh Kumar]

Hearing: 15.06.2022Pronounced: 13.07.2022

ORDER Per Shri Rajesh Kumar, AM:

This is the appeal preferred by the assessee against the order of the Commissioner of Income Tax(Appeals)-NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 28.12.2021 for the assessment year 2010-11.

The assessee has raised following grounds of appeal against the order of Ld. CIT(A) out of which we are inclined to adjudicate the ground no. 4 raised by the assessee which is as under:

4. Even otherwise and without prejudice to Grounds No. 1, 2 & 3 above, the Ld. CIT(A) was unjustified in affirming the AO’s action in disallowing the entire TDS claim of Rs. 79,028/- without assigning any reason for same though the same is duly appearing in Form 26AS and in view of the facts and in the circumstances the Ld. CIT(A) may kindly be directed to allow such credit accordingly. 3. Facts in brief are that the assessee filed its return of income on 26.09.2010 claiming TDS of Rs. 79,028/- as per Form 26AS, however in the intimation/order dated25.04.2011 u/s 143(1) of the Act, the assessee was not granted the credit of TDS without assigning any reasons therefor. The appeal of the assessee also Baid Trade Fina Pvt. Ltd. dismissed as barred by limitation by the Ld. CIT(A) reasoning that delay in filing the appeal could not be explained by the assessee.

4. After hearing the rival contentions and perusing the material on record, we find that the AO has not granted the credit of TDS of Rs. 79,028/- which was apparently and undisputedly to be given to the assessee as this amount is duly appearing in the form 26AS. The Ld. CIT(A) dismissed the appeal of the assessee on the ground of being late without deciding the issue on merits. We also note that a rectification petition moved by the assessee before the AO dated 20.1.2020 requesting the AO to grant the credit of TDS of Rs. 79,028/- is also pending before the AO. Considering the facts and circumstances in totality , we are of the considered view that the assessee is entitled to credit of TDS which was denied in the intimation u/s 143(1) of the Act. Accordingly we restore the issue to the file of the AO with the direction to verify and allow the same after affording a reasonable opportunity of hearing to the assessee.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order is pronounced in the open court on 13th July, 2022

BAID TRADE FINA PVT. LTD.,KOLKATA vs. ITO, WARD-1(4), KOLKATA

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