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Income Tax Appellate Tribunal, A Bench, Mumbai
Before: Shri R.C. Sharma & Shri Ravish Sood
This appeal has been filed by the assessee against the order of the CIT(A) for A.Y. 2007-08 in the matter of order passed under Sections 201(1)/201(1A) of the Income Tax Act (hereinafter “the Act”).
Rival contentions has been heard and record perused. Ground Nos. 1 & 2 are against the action of the CIT(A) in raising the demand of `30,48,950/- under Section 201(1) on account of nonpayment of TDS deducted and interest of `15,42,630/-. During the course of appellate proceedings, copies of the relevant challans were placed on record. On perusal of the challans, for which the appellant has not received credit, it was noted that the TAN No. mentioned on these challans is MUML04715E, instead of MUML04924D, which is the assessee’s TAN No. The mistake was pointed out to the assessee, in response to which, the assessee has filed certificate of Indian Bank, wherein it has been stated that the amounts corresponding to the challans have been debited to the assessee’s
2 LIC of India, Branch 90 bank account. The assessee has thus sought to press the CIT(A) to ask the AO to give credit for the said challans as there is an apparent mistake in the mentioning of the TAN No. However, the AO did not accept assessee’s contention and raised demand under Section 201(1)/201(1A) of the Act. By the impugned order the CIT(A) confirmed the order of the AO.
The learned A.R. placed on record the order of the Tribunal in the case of Jaipur Branch of LIC of India dated 08.09.2015, wherein under similar facts and circumstances the AO was directed to give credit for the tax deducted at source. The order of the Tribunal is extracted as under: -
“5. We have heard ld. D/R and perused the material on record. No one attended on behalf of the assessee. It is noted that department has not raised any contention in respect of TDS of Rs. 4,24,700/- which has been deposited under the wrong TAN. However, in respect of Rs. 5,02,000/- which has been duly deposited under assessee’s own TAN, the department has raised a contention saying that the same has been deposited under a wrong section. So the only limited issue before us is how this challan should be given credit of in the hands of the assessee and whether the action lies with the assessee or with the department. In its grounds of appeal
, department submitted that the assessee should have filed a correction statement to rectify the wrong section which has been quoted in the challan and in absence of that the credit has not been given to the assessee. It seems to us that once the challan is deposited with the bank, it would not be possible for assessee to retrieve the same and make any correction. However, as far as the TDS return is concerned, if there is any mistake, same can be rectified by filing the correction statement. It is not under dispute that assessee has deposited the TDS of Rs. 5,02,000/- under its own TAN. In the light of above discussion, we hereby direct the Revenue to allow the due credit of such TDS for Rs. 5,02,000/- to the assessee after verification of original challan.”
4. We have carefully gone through the order of the Authorities below as well as the order of the Tribunal wherein under similar facts and circumstances and AO was directed to verify the original challan and give credit for the same. Respectfully following the order of the Tribunal, we direct the AO to verify the original challan for deposit of TDS and decide the issue as per the direction given by the Tribunal in its order dated 08.09.2015.