M/S KAR & KAR & KAR CONSRUCTION PVT. LTD.,KHARAGPUR vs. ITO, WARD-39(1), KOLKATA

The present appeal has been preferred by the assessee against the order dated 16.03.2021 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).

The sole issue raised by the assessee in this appeal is regarding non-granting of credit of TDS.

The counsel for the assessee has submitted that earlier there was partnership firm namely Kar & Kar & Kar Construction. The firm was closed and later on a company was formed in the identical name Kar & Kar & Kar Construction Pvt. Ltd. During the year, certain payments were received by the assessee, whereupon, the TDS was deducted by the concerned parties. However, the concerned payers mentioned the PAN number of the old firm instead of that of the assessee mistakenly. The Assessing Officer disallowed the claim of the credit of TDS on the ground that the same was deposited in different PAN number which was of the firm. The contention of the ld. counsel for the assessee is that the firm was already closed and a company was formed with the identical name. That the Assessment Year: 2018-19 M/s Kar & Kar & Kar Construction Pvt. Ltd payments were given to the company, whereas, the concerned parties have wrongly deposited TDS mentioning the PAN of the firm. That the aforesaid TDS belongs to the assessee.

The ld. DR, on the other hand, has submitted that the TDS has been deposited in the account of the firm which is reflected in form 26AS. That the firm should file return and claim the credit of the TDS.

We have considered the rival contentions of the parties. The firm has already been closed and not doing any business. If the respective payments have been made by the concerned parties to the assessee then, in our view, if a mistake has been committed by the concerned payers in depositing TDS in the different PAN account, that is subject to the rectification by the concerned Assessing Officer. We accordingly restore the matter to the file of the Assessing Officer with a direction that the assessee will furnish evidence that the aforesaid payments/TDS deducted by the payers belongs to assessee whereupon, the Assessing Officer will examine the matter and if it is found that the aforesaid TDS was required to be deducted and deposited in the account of the assessee, whereas, the same has been wrongly deposited in the name of the firm, then the Assessing Officer accordingly shall allow the claim of the assessee. With the above observation, the appeal of the assessee is treated as allowed for statistical purposes.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Kolkata, the 9th June, 2022. Sd/- Sd/- [Girish Agrawal] [Sanjay Garg] Accountant Member Judicial Member Dated: 09.06.2022. RS