DHARTI FOUNDATION,SABARKANTHA vs. THE DY.DIT, CPC PRESENT JURIS. THE ITO, EXEMPTION, PALANPUR

ITA 2250/AHD/2025Status: DisposedITAT Ahmedabad09 March 2026AY 2022-23Bench: the Ld. CIT(A)/NFAC, who dismissed the appeal of the assessee by observing as follows:4 pages
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What did the Tribunal hold?

The Tribunal found that the issue of granting TDS credit necessitated proper verification and reconciliation between the receipts reflected in Form 26AS and the income offered to tax in the return. Consequently, in the interest of justice, the matter was restored to the file of the Assessing Officer for fresh examination and verification of the TDS claim as per the provisions of the Act.

What were the facts?

The assessee, Dharti Foundation (a resident trust), claimed TDS credit of Rs. 3,34,690/- in its return, which was reflected in Form 26AS. However, the CPC, while processing the return under section 143(1) and subsequently rectifying it under section 154, allowed only Rs. 26,697/-. The CIT(A) dismissed the assessee's appeal, citing a significant discrepancy between the income reflected in Form 26AS (Rs. 46,12,020/-) and the total income declared in the return (Rs. 3,34,690/-), indicating that the entire income from 26AS was not offered to tax.

What were the issues?

Whether the CIT(A) erred in upholding the disallowance of TDS credit due to a mismatch between income declared in the return and receipts reflected in Form 26AS, requiring proper verification and reconciliation by the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(1),Section 199(2),Section 194A,Section 194C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ SMC ” BENCH, AHMEDABAD

Before: MS SUCHITRA KAMBLE

For Appellant: Shri Rushin Patel, AR
For Respondent: Smt. Mamta Singh, Sr. DR
Hearing: 09.03.2026Pronounced: 09.03.2026

PER SUCHITRA KAMBLE, JM:

The captioned appeal has been filed at the instance of the Assessee against the order dated 04.09.2025 passed by the Learned Commissioner of Income Tax (Appeal), Thane arising in the matter of assessment order passed under s. 154 of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2022-23. Asst. Year 2022-23

2

2.

The assessee has raised the following grounds of appeal:

1.

The Ld.CIT(A) erred in law and facts of the case, in sustaining the

The order continues below.

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