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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI V. DURGA RAO & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2009-10 arises out of the order of learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] dated 15.03.2021 in the matter of assessment order passed by ACIT, Circle-1, Erode (AO) u/s. 154 of the Act on 25.06.2019. In this appeal, the assessee seeks credit of TDS as reflected in Form 26AS.
2 - 2. The assessee claimed TDS credit of Rs.16,50,478/-. However, Ld. AO granted credit only for Rs.15,01,587/- in an intimation u/s 143(1). The case was scrutinized u/s 143(3) wherein TDS credit was granted to the extent of Rs.15,22,957/- only. The assessee filed rectification petition u/s 154. The Ld. AO noted that the assessee was claiming TDS credit of Rs.18,94,534/- but as per the return of income, the assessee claimed credit of Rs.16,50,478/-. In the system, TDS credit of Rs.15,29,943/- was reflected and there was mismatch in TDS credit for Rs.1,20,535/- due to non-availability of credit due to the fact that the deductors’ TAN and the deduction amount was not matching with the assessee’s ITR and Form 26AS. Finally, Ld. AO granted additional credit of Rs.6,896/- only. For the remaining amount, the assessee was directed to update Form 26AS through the deductors with correct TAN and then file fresh rectification application. Aggrieved, the assessee preferred further appeal before Ld. CIT(A) and relied on CBDT Instruction No.5/2013 dated 08.07.2013. However, Ld. CIT(A) dismissed the appeal by observing that the deductors’ TAN and the amount deducted were not matching with assessee’s Income Tax Return. Unless, the deductors update the data in Form 26AS with correct TAN & TDS, credit cannot be given. Aggrieved, the assessee is in further appeal before us.
Upon perusal of impugned order, it could be gathered that though credit is available in Form 26AS, the same has been denied to the assessee on the ground that certain updation in data by deductors is required. Accordingly, the assessee has been directed to update Form 26AS through the deductors with correct TAN and then file fresh rectification application without considering the fact that the same is beyond the control of the assessee. These directions run contrary to 3 - CBDT Instruction No.5/2013 dated 08.07.2013 which state that once the assessee approaches the AO with requisite details and particulars in the form of TDS certificates as evidence against any mismatched amount, the said AO would verify whether or not the deductor has made the payment of the TDS in the government account and if the payment has been made, credit of the same shall be given to the assessee. The Ld. AO is at liberty to ascertain and verify the true and correct position about the TDS with the concerned Assessing Officer (TDS). The AO may also, if deemed necessary, issue a notice to the deductor to compel him to file correction statement as per procedure laid down. Thus, it is for Ld. AO to ascertain the correct position and the assessee could not be burdened with the task of directing the deductor to file correction statement since the same would be beyond the control of the assessee. The Ld. AR has also placed on record a copy of Form 26AS along with summary of TDS deducted against the assessee. As per this summary, total TDS deposited on behalf of the assessee has been summed up as Rs.18,89,655/-. Accordingly, we direct Ld. AO to ascertain correct position and verify the correct amount of TDS credit as available to the assessee and grant the credit of the same in accordance with law.
The appeal stands allowed for statistical purposes. Order pronounced on 05th May, 2022 Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) �ाियक सद3 /JUDICIAL MEMBER लेखा सद3 / ACCOUNTANT MEMBER चे+ई / Chennai; िदनांक / Dated : 05-05-2022 EDN/- आदेश की Uितिलिप अ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु� (अपील)/CIT(A) 4. आयकर आयु�/CIT 5. िवभागीय �ितिनिध/DR 6. गाड� फाईल/GF