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Facts
The assessee, 3F Industries Limited, appealed against an order of the Ld. CIT(A) dated 05/12/2024, which dismissed their appeal against an order passed under Section 154. The core issue concerned the non-allowance of TDS credit of Rs. 13,98,345/- relating to AY 2018-19 to be claimed in AY 2021-22, despite a previous Tribunal order dated 25/11/2024 directing the AO to allow this credit.
Held
The Tribunal found that the Ld. CIT(A) failed to consider the binding decision of the earlier Tribunal order, which had already adjudicated the matter in the assessee's favor. Consequently, the Tribunal set aside the CIT(A)'s order as unsustainable in law, allowing the assessee's grounds of appeal.
Key Issues
Whether the CIT(A) can dismiss an appeal concerning TDS credit when the issue has already been decided in the assessee's favor by a prior Tribunal order, thereby rendering the CIT(A)'s order unsustainable in law.
Sections Cited
154, 250
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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
सुनवाई क� तार�ख / Date of Hearing : 13/08/2025 घोषणा क� तार�ख/Date of : 04/09/2025 Pronouncement O R D E R PER DUVVURU RL REDDY, Vice President:
This appeal filed by the assessee is against the order of the Addl / Joint Commissioner of Income Tax (Appeals)-2, Coimbatore [“Ld. CIT(A)-NFAC”] in DIN & Order No.ITBA/APL/S/250/2024-25/1070657569(1),dated 26/11/2024
The assessee has raised the following grounds of appeal: “Based on the facts and circumstances of the case, 3F Industries Limited respectfully submits that in the order passed by the Hon’ble Addl CIT / JCIT (A)-2, Coimbatore under section 250 of the Act dated 05th December, 2024, the Ld. Addl. / JCIT(A)-2 erred in (1) Failed to allow credit of unclaimed brought forward TDS of Rs. 13,98,345/- relating to AY 2018-19 in the AY 2021-22. (2) Not considering the appellant’s request to withdraw the appeal as the issue was already decided by the Hon’ble ITAT, Vizag vide dated 25/11/2024. (3) Without prejudice, not following the Hon’ble ITAT judgment in respect of the same issue under consideration and for same AY. (4) The appellant craves leave to add amend substantiate or vary from any of the ground of appeal before or at the time of hearing of the appeal.”
3. At the outset, the Ld. AR pleaded that the Hon’ble Tribunal has decided the issue in favour of the assessee by allowing the TDS credit of Rs. 13,98,345/- during the impugned assessment year vide its order dated 25/11/2024. This fact was brought to the notice of the Ld. CIT(A) in the appeal against the order U/s. 154 of the Act. The Ld. AR further submitted that the assessee prayed for withdrawal of the appeal since the matter has been 3F Industries Limited adjudicated by the Hon’ble Tribunal. However, the Ld. CIT(A) has not considered the request of the assessee and dismissed the appeal of the assessee by disallowing the TDS credit during the impugned assessment year. On this issue, she pleaded that since the direction of the Hon’ble Tribunal in force, the order of the Ld. CIT(A) shall be dismissed as infructuous.
4. Per contra, the Ld. DR relied on the order of the Ld. CIT(A). However, the Ld. DR could not controvert the facts presented by the Ld. AR.
We have heard both the parties and perused the orders of the Ld. Revenue Authorities including the order of the Tribunal dated 25/11/2024. It is an undisputed fact that the Tribunal in its order dated 25/11/2024 has directed the Ld. AO to allow the TDS credit of Rs. 13,98,345/- during the impugned assessment year subject to verification. Relevant portion of the Tribunal’s order (supra) is extracted herein below: “16. We have heard both the sides and perused the material available on record. It is an undisputed fact that the tax was deducted for the income admitted by the assessee during the A.Y. 2018-19 which was remitted to the Government account during the subsequent A.Y. Thus, the assessee lost the opportunity to claim the credit for TDS since it was not appearing in Form 26AS for the A.Y. 2018-19 at the time of filing the return of income for the A.Y. 2018-19. Subsequently, these credits were appearing in the Form 26AS for the A.Y. 2018-19 which enabled the assessee to claim the 3F Industries Limited credit for tax while filing the return of income for the A.Y.2021-22. We are of the view that there cannot be unjust enrichment to the revenue arising out of the technical default or delay in deduction / deposit of tax at source by a third party. We therefore direct the Ld. AO to verify the claim made by the assessee during the A.Y. 2021-22 for the claim of tax deducted at source pertaining to A.Y.2018-19 and thereby allow the same, if found genuine. Accordingly, this ground raised
by the assessee is allowed for statistical purposes.”
6. However, we find that the Ld. CIT(A) without considering the decision of the Tribunal has dismissed the appeal filed by the assessee against the order U/s. 154 of the Act. In these circumstances, we find that the order of the Ld. CIT(A) has no legs to stand since the Tribunal has already adjudicated the matter in favour of the assessee. We therefore set-aside the order of the Ld. CIT(A) by treating it as unsustainable in law. Accordingly, grounds raised by the assessee are allowed.
In the result, appeal filed by the assessee is allowed.
Pronounced in the open Court on 04th September, 2025. Sd/- Sd/- (एस बालाकृ�णन) (दु�वू� आर.एल रे�डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT Dated :04/09/2025 OKK - SPS 3F Industries Limited आदेश की �ितिलिप अ�ेिषत /Copy of the order forwarded to:- 1. �नधा�रती/ The Assessee – 3F Industries Limited, P.B. No. 15, Tanuku Road, Tadepalligudem, West Godavari District, Andhra Pradesh-534102 2. राज�व/The Revenue –ACIT, Circle-1, Rajamahendravaram.
The Principal Commissioner of Income Tax, 4.आयकर आयु�त (अपील)/ The Commissioner of Income Tax (Appeals), 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, �वशाखापटणम/ DR, ITAT, Visakhapatnam 6.गाड� फ़ाईल / Guard file आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam