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Facts
The appellant company filed a Nil income return for AY 2013-14. During the assessment proceedings, it claimed an enhanced TDS credit of Rs. 56,54,378/- as per Form 26AS, which was not granted by the Assessing Officer (AO). The CIT(A) subsequently denied the claim, holding that TDS credit could not exceed the amount originally claimed in the return of income.
Held
The Tribunal found the CIT(A)'s reasoning to be contrary to Section 155(14) and Section 219 of the Income Tax Act. It restored the matter to the AO with a direction to consider the appellant's claim for enhanced TDS credit in accordance with these statutory provisions.
Key Issues
Whether the CIT(A) was justified in denying enhanced TDS credit, supported by Form 26AS, solely because it was not declared in the original return, overlooking the provisions of Section 155(14) and Section 219 of the Income Tax Act.
Sections Cited
143(3), 155(14), 219
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI KESHAV DUBEY, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 21.03.2023 for Assessment Year (AY) 2013-14.
Brief facts of the case are that the appellant company is incorporated under the provisions of Companies Act, 1956. The appellant company is engaged in the business of running a shopping Gulf Asia Contracting Company Pvt. Ltd. mall. The return of income for AY 2013-14 was filed on 30.09.2013 declaring Nil income. Against the said return of income, the assessment was completed by the ACIT, Circle-1(1), Kollam (hereinafter called "the AO") vide order dated 28.03.2016 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act). The AO accepted the returned income.
Against the said assessment order, an appeal was filed before the learned CIT(A) contending that the credit for TDS of Rs. 56,54,378/- appearing as per Form 26AS was not given by the AO despite the claim made for enhancement of TDS credit during the assessment proceedings. The CIT(A), however, denied the claim for enhancement of TDS credit on the ground that the credit for TDS cannot be granted more than the claim of the assessee made in the return of income.
Being aggrieved, the appellant is in appeal before us in the present appeal.
The learned Sr. DR submits that the AO totally ignored the enhanced claim made for TDS credit during the course of assessment proceedings. He further submits that the TDS credit available as per Form 26AS as on the date of completion of assessment proceedings should have been given.
On the other hand, the learned Sr. DR submits that the claim for enhanced TDS cannot be granted in the absence of any Gulf Asia Contracting Company Pvt. Ltd. application made in terms of provisions of section 155(14) of the Act and, therefore, no interference is called for in the impugned order.
We have heard the rival contentions of both the parties and perused the material available on record. The solitary issue arises for our consideration in the present appeal is whether the CIT(A) was justified in denying grant of credit for enhanced TDS amount claimed solely on the ground that no enhanced claim was made in the return of income. Admittedly, the appellant company had made claim for TDS credit as per Form 26AS as on the date of filing the return of income. However, during the course of assessment proceedings the appellant made a claim for credit of enhanced TDS credit which is placed on pages 7 to 9 of the paper book.
However, the AO had failed to deal with the claim made during the courses of assessment proceedings. On appeal before the CIT(A) the claim for credit of enhanced TDS was denied on the ground that the amount of TDS credit cannot be more than the claim made in the return of income. This reasoning of the CIT(A) runs counter to the provisions of sub-section (14) of section 155 of the Act and also section 219 of the Act. Therefore, in our considered opinion the interest of justice would be met if the matter is restored to the file of the AO with a direction to consider the claim of the appellant in terms of sub-section (14) of section 155 and section 219 of the Act.
Order pronounced in the open court on 19th February, 2025.