SHAH KHANDELWAL JAIN & ASSOCIATES,PUNE vs. DCIT, CPC, BENGALURU

This appeal by the assessee against the order dated 30-03-2021 passed by the National Faceless Appeal Centre, Delhi (‘NFAC’) for assessment year 2017-18.

The assessee raised three grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A) justified in dismissing the appeal by holding the correct course of action is to file an application u/s. 154 of the Act before the AO.

The ld. AR submits that the return of income was accepted to intimation u/s. 143(1) of the Act, wherein, the CPC, Bangalore disallowed employee’s contribution to provident fund for not depositing the same before due date as prescribed by the provident fund laws and also credit for TDS. The ld. AR submits that the CIT(A) did not even considered the issue of employee’s contribution which is covered in favour of the assessee and no opportunity was given for the assessee to substantiate its claim for tax credit for TDS. We note that though the said two issues raised before the CIT(A) but was not considered only for the reason that is a remedy for assessee to file an application u/s. 154 of the Act. The ld. AR submits that the assessee is ready to produce all the details showing payment of employee’s contribution within the due date of filing of return of income and also details regarding the claim of credit for TDS for the year under consideration. Therefore, taking into consideration the facts and circumstances of the case, we deem it proper to remand the matter to the file of jurisdictional AO for his fresh consideration in respect of the issues as discussed above. The assessee is liberty to file evidence in the support of its claim. Thus, the grounds raised by the assessee are allowed for statistical purpose.

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