KRISHNAMURTHI VANAJA,COIMBATORE vs. ITO, NCW-1(4), COIMBATORE

Aforesaid appeal by assessee for Assessment Year (AY) 2021-22 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-08-2024 in the matter of an intimation issued by CPC u/s 154 of the Act on 12-09-2023 raising certain demand against the assessee. It emerges that the assessee filed return of income which was processed u/s 143(1). The assessee made rectification application u/s 154 requesting to consider the agricultural land not to be capital asset. The application was rejected by CPC. During appellate proceedings, the assessee stated that it had sold agricultural land for Rs.136.50 Lacs against which tax was deducted at source. The assessee was not allowed TDS credit in the return of income. Initially, the assessee requested for rectification u/s 154 which was refused on 13-07-2022. The assessee preferred another application which was allowed on 10- 11-2022. However, another suo-motu rectification was made by Ld. AO u/s 154 on 11-01-2023 denying TDS credit. The assessee again preferred rectification which was rejected on 24-05-2023. More requests of rectification were made which were rejected on 26-06-2023 and 12- 09-2023.

The Ld. CIT(A) held that the assessee could not furnish any evidence in support of the claim that the property was an agricultural land. Accordingly, the appeal was dismissed.

The Ld. AR stated that the only grievance of the assessee was grant of TDS credit. The agricultural income as claimed exempt was accepted by CPC and therefore, this aspect could not have been gone into by Ld. CIT(A). The Ld. Sr. DR, on the other hand, supported the order of Ld. CIT(A).