A P SHAH & CO.,AHMEDABAD vs. THE ASSTT, DIRECTOR OF IT, CPC, BANGLORE

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ITA 120/AHD/2021Status: DisposedITAT Ahmedabad23 December 2022AY 2018-195 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the Form 26AS submitted by the assessee was updated after the CIT(A)'s order, showing the previously mismatched TDS credits. The issue was restored to the AO for verification of the updated Form 26AS.

What were the facts?

The assessee claimed TDS credit, but the CPC granted short credit during processing. A rectification application and an appeal to the CIT(A) were rejected as the TDS was not reflected in Form 26AS at that time.

What were the issues?

Whether the assessee is entitled to full TDS credit when Form 26AS was updated after the initial processing and appellate orders, and if so, how the verification should be done.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SMT.ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL

Hearing: 12/12/2022Pronounced: 23/12/2022

(Applicant) (Responent) Assesseeby : Shri P.F. Jain, AR : Shri Ravindra, Sr.DR Revenue by सुनवाई क� तार�ख/Date of Hearing : 12/12/2022 घोषणा क� तार�ख /Date of Pronouncement: 23/12/2022 आदेश/O R D E R PERANNAPURNA GUPTA, ACCOUNTANT MEMBER Present appeal has been filed by the assessee against order passed by theNational Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the NFAC”] dated 26.4.2021 passed under section 250(6)of the Income Tax Act, 1961 [hereinafter referred to as "the Act" for short]for the Asst.Year 2018-19.

2.

Grounds of appeal raised by the assessee read as under:

“1. The ld.CIT(A) has erred in law and on facts in upholding the order of CPC passed u/s.154 without granting full credit of TDS as claimed resulting into grant of short refund.

2 2. He has erred in law and on facts that the entire receipt pertaining to TDS was duly reflected in the accounts of the assessee supported by the reconciliation submitted justifying grant of full credit.”

3.

As transpires from order of the authorities below, the facts relating to the case before us are that while processing return of income of the assessee for the impugned year under section143(1) by the CPC on 10.12.2019, there was a short credit of TDS given by Rs.8,79,205/-.Against the said intimation rectification application under section 154 of the Act dated 14.8.2020 was filed by the assessee which was rejected by the AO, against which the assessee preferred appeal before the ld.CIT(A) who dismissed the assessee’s appeal stating that short TDS credit had been rightly denied to the assessee since it was not available to the assessee as per the information available on-line in Form No.26AS relating to the assessee, which Form reflected all details of TDS deducted on the assessee. The relevant finding of the ld.CIT(A) from para 4 to 4.6 of the order is as under:

4.

Before us, ld.counsel for the assessee drew our attention to Form No.26AS of the assessee for the impugned year pointing out that all the TDS credits not shown to be reflected/mismatched from that reflected in the Form No.26AS were actually reflected in the said

4 form No.26AS. He drew our attention to the said Form No.26AS of the assessee pertaining to the impugned assessment year i.e.Asst.Year 2018-19 filed before us in PB Page No.8 to 11. On perusal of the same, we find that the contention of the assessee to the effect that all the mismatched TDS credits totaling Rs.8,79,205/- reproduced at para 4.4 of the CIT(A)’s appellate order, against those TAN of deductor/PAN of the payers as reproduced above, were in fact reflected as deducted in Form No.26AS filed before us. But a closer scrutiny of the Ld.CIT(A)’s order and Form No.26AS revealed that while the Ld.CIT(A) had noted this mismatch in Form No.26AS as on the date of processing of the return under section 143(1) i.e. 10-12-2019 and at time of rejection of the rectification applicationfiled u/s 154 of the Act on 14-8-2020,the Form No.26AS filed before us by the assessee was updated form with data updated till 23-7-2021. Which means that, subsequent to the passing of the rectification order, and the order of the ld.CIT(A) which was passed on 26-4-2021, the assessee had got its TDS data rectified on 23.7.2021 ensuring that the TDS shown as not deducted on receipts from various parties inthe list in para 4.4 of the CIT(A) order above, are duly reflected in the updated Form No.26AS. This fact was pointed out to the Ld.Counsel for the assessee who fairly admitted that the TDS data must have been subsequently revised and updated. In view of rectification and updation of Form No.26AS we find that the assessee does have a case of short credit of TDS being given to it in the processing of its return filed for the year under section 143(1) of the Act. But in the interest of justice, this updated Form No.26AS filed by the assessee before us, reflecting all the TDS earlier noted as not deducted but now shown as deducted, needs to be verified by the Department and for the said purpose we restore the issue back to the AO to verify the authenticity of Form No.26AS

5 now filed by the assessee before us, and thereafter allow credit of TDS as per law. Accordingly, grounds of appeal raised by the assessee are allowed in above terms for statistical purposes .

5.

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

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