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Facts
The assessee challenged the CIT(A)'s order which had allowed the appeal against an intimation under Section 143(1). The assessee contended that the CIT(A) erred in granting short credit for TDS and short interest under section 244A.
Held
The Tribunal found that the CIT(A) adopted an incorrect figure for TDS credit, leading to a short grant of INR 50,00,000/-. The Assessing Officer was directed to grant the correct TDS credit. For the interest under section 244A, the Assessing Officer was directed to re-compute the interest.
Key Issues
Short grant of credit for Tax Deducted at Source (TDS) and short grant of interest under section 244A of the Act.
Sections Cited
143(1), 244A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, C BENCH, MUMBAI
Appearance For the Appellant/Assessee : Shri Bhupal Rapelli Shri Pratik Rathod For the Respondent/Department : Shri H.M. Bhatt Date Conclusion of hearing : 13.05.2024 Pronouncement of order : 31.05.2024 O R D E R Per Rahul Chaudhary, Judicial Member:
1. 1. By way of the present appeal the Assessee has challenged the order, dated 21/11/2023, passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘the CIT(A)’] for the Assessment Year 2020-2021, whereby the Ld. CIT(A) had allowed the appeal of the Assessee against the intimation/order, dated 10/05/2021, passed under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. The Assessee has raised the following grounds of appeal:
“1. Short grant of credit for Tax Deducted at Source (‘TDS’) On the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax Appeals, NFAC (‘CIT-A’) has erred in granting short credit for TDS by Rs. 50,00,000/-. The Learned CIT(A) has erred by not considering the credit of TDS of Rs. 19,78,98,204/- and erroneously mentioned TDS credit at Rs. 19,28,98,204/- which has resulted in a short grant of TDS credit of Rs. 50,00,000/-. The appellant states that there is a typographical error while concluding the order on Para 5.5 of Page No. 6 and Para 5.6.1 of Page No. 7.
Short grant of Interest under section 244A of the Act On the facts and circumstances of the case and in law, the Learned Assessing Officer has granted short interest under section 244A of the Act. The appellant prays that interest under section 244A for the period of 24 months i.e. 1 April 2020 to actual receipts of refund i.e. 2 March 2022 to be granted.”
We have heard both the sides and perused the material on record.
Ground No.1 4. The first grievance of the Appellant is that while passing order, dated 21/11/2023, the CIT(A) has incorrectly issued direction to grant credit for tax deducted at source amounting to INR 19,28,98,204/- instead of the correct amount being INR 19,78,98,204/-. Thus, resulted in short grant of credit of INR 50,00,000/-. On perusal of intimation/order issued under 2 Section 143(1) of the Act, we find that the aggregate amount of tax deducted at source reflected therein is INR 19,78,98,204/-. We further note that in paragraph 5.4 the CIT(A) has recorded as under: “5.4 As per FORM 26AS [Data updated till 10.09.2020], the following payments and TDS have been made by two TDS deductors, in the case of the Appellant for the Assessment Year.Y. 2020-21: Name & TAN of deductor Total amount Total TDS TDS u/s credited made & Deposited National Highway Authority of 9527282400.00 19,05,45,647 194C India PIU RAMBAN AMRN12129F9527282400.00 State Bank of India 73525535.32 73,52,557 194A MUMS89583E Total 19,78,98,204 …”(Emphasis Supplied) 4.1. Thus, it is clear that the CIT(A) has adopted incorrect figure of tax deducted at source of INR 19,28,98,204/- (as against the correct figure of INR 19,78,98,204/-). Accordingly, the Assessing Officer is directed to grant credit of tax deducted at source amounting to INR 19,78,98,204/-. Ground No. 1 raised by the Appellant is, thus, allowed.
Ground No. 2 5. As regards, Ground No. 2, pertaining to computation of interest under Section 244A of the Act, we direct the Assessing Officer to re-compute the amount of interest payable under Section 244A of the Act after taking into consideration, our findings/adjudication in Ground No. 1 above. The Assessing Officer is directed to grant interest under Section 244A of the Act for the period specified therein. Thus, Ground No. 2 raised by the Appellant is allowed for statistical purposes.
3 6. In result, the present appeal preferred by the Assessee is allowed for statistical purposes.