M/S. MANGAL PLASTIC UDYOG,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, BANGALORE

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ITA 1424/BANG/2016Status: DisposedITAT Bangalore21 September 2016AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while credit for advance tax cannot be allowed on a TDS challan, the AO must pass an appropriate order on the assessee's rectification request. The matter was restored to the AO for this purpose.

What were the facts?

The assessee mistakenly used a TDS challan instead of an advance tax challan to pay Rs. 150,000. The assessee requested the AO to rectify this error, but no order was passed.

What were the issues?

Whether the AO is obligated to pass an order on the assessee's request for rectification of a challan used for tax payment, and if so, what is the procedure.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCH ‘SMC’, BANGALORE

Before: SHRI A.K.GARODIA, ACCOUNANT MEMBER

For Appellant: Shri Sudheendra B. R., C. A
For Respondent: Shri Naresh Saka JCIT

O R D E R PER A. K. GARODIA, A.M.:

This appeal is filed by the assessee. This is directed against the order of learned CIT (A) – 3, Bangalore dated 29.07.2016 for A. Y. 2014 – 15.

2.

The assessee has only one grievance that the A.O. has not rectified the challan as per which an amount of Rs. 150,000/- was paid by the assessee because the assessee by mistake used the challan of TDS payment instead of using Advance tax Challan for making this payment on 07.09.2013.

3.

Learned AR of the assessee submitted that as per letter dated 29.09.2014, the assessee has made a request to the A.O. for rectification of challan but no order is passed by the A.O. in this regard and learned CIT (A) also has not given any finding on this aspect. Learned DR of the revenue supported the order of CIT (A).

4.

I have considered the rival submissions and perused the material on record. I find that this is not in dispute that the assessee made payment of this amount by using TDS challan and hence, credit for the same as advance tax cannot be allowed. But nevertheless, when a request is made by the assessee for rectification of the challan, the A. O. should pass appropriate order on such request as per law. With these observations, I restore the matter back to the A.O. for passing appropriate order as per law on such request of the assessee made before him on 29.09.2014 and if the assessee succeeds in this matter and the A.O. rectifies the challan then to allow credit to the assessee.

5.

In the result, the appeal of the revenue is allowed for statistical purposes.

Order pronounced in the open court on the date mentioned on the caption page.

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