Loading judgment…
Facts
The assessee filed a NIL income return for AY 2023-24 and claimed TDS credit of Rs. 1,86,110. However, the CPC granted TDS credit of Rs. 1,48,769, disallowing Rs. 37,341. The CIT(A) dismissed the appeal, noting that income related to claimed TDS was not offered in the return.
Held
The Tribunal observed that a portion of TDS credit was claimed on sponsorship income which was accounted for separately. Therefore, the matter was set aside to the Assessing Officer to grant due credit after verifying the facts.
Key Issues
Whether TDS credit can be allowed if the corresponding income is not offered in the return of income.
Sections Cited
143(1), 199
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL
(Assessment Year: 2023-24) IMNU Student Activity Association, Vs. Income Tax Officer, Nirma University Campus, Ward-3(3)(2), Sarkhej-Gandhinagar Highway, Ahmedabad Chandlodia S.O., Ahmedabad-382481 [PAN No.AAAAI8055N] (Appellant) .. (Respondent) Appellant by : Shri Hemanshu Shah, C.A. Respondent by: Ms. Ketaki Desai, Sr. DR 07.01.2025 Date of Hearing Date of Pronouncement 15.01.2025 O R D E R
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), ADDL/JCIT (A)-2, Guwahati vide order dated 19.06.2024 passed for A.Y. 2023-24.
The assessee has taken the following grounds of appeal:-
“1. In law and in facts and circumstances of the Appellant case, the learned Commissioner of Income-tax (Appeals) has erred in points of law and facts.
2. In law in facts and circumstances of the Appellant case, the learned Commissioner of Income-tax (Appeals) has grossly erred in dismissing credit of TDS for Rs. 1,48,769/- instead of Rs. 1,86,110/- as claimed in the return of income.
Your appellant reserves the right to add, alter, amend all or any of the above grounds of appeal as may be advised from time to time.”
IMNU Student Activity Association vs. ITO Asst.Year –2023-24 - 2– 3. The brief facts of the case are that the assessee filed return of income for the impugned assessment year declaring “NIL” Income and paid taxes of Rs. 1,86,110/-. Intimation under Section 143(1) of the Act was passed on 12.01.2024 determining total income at Rs. NIL and the refund of the assessee was determined at Rs. 1,56,200/-. The credit of TDS granted to the assessee was for a sum of Rs. 1,48,769/- instead of Rs. 1,86,110/- as claimed by the assessee.
In appeal before Ld. CIT(A), he observed that CPC, Bangalore had allowed TDS credit of Rs. 1,48,769/- i.e. there was a disallowance of TDS of Rs. 37,341/- (Rs. 1,86,110/- less Rs. 1,48,769/-). On going through the income and expenditure account submitted by the assessee, CIT(A) observed that amount of Rs. 3,50,000/- and Rs. 60,000/- received by the assessee from Indian Oil Corporation and M/s. PMG Integrated Communications Pvt. Ltd. have not been included in the income and expenditure account by the assessee. However, assessee has claimed TDS on the said amount. Ld. CIT(A) held that Section 199 of the Act envisages that credit of TDS would be granted to the assessee only if the income has been considered in the return of income filed by the assessee. However, in the instant case, the assessee has claimed TDS, but not offered the corresponding income in the computation for the impugned assessment year. Accordingly, the appeal of the assessee was dismissed.
Before us, the Counsel for the assessee submitted that TDS claimed of Rs. 1,48,110/- on interest income of Rs. 14,81,117/- has been accounted in the income and expenditure account. The balance TDS credit of Rs. 38,000/- was claimed on sponsorship income of Rs. 5,00,000/-, which was accounted through separate “student activity fund account”. Accordingly, looking into the instant facts, Ld. CIT(A) has erred in not granting credit of TDS. On going through the submissions of the assessee, the matter is set-aside to the file of Assessing Officer with a direction to give due credit to the assessee in respect of TDS credit claimed by the assessee for the impugned year under consideration, in accordance with law, after verifying the facts of the assessee’s case.
In the result, the appeal of the assessee is allowed for statistical purposes. This Order is pronounced in the Open Court on 15/01/2025