M/S EVERBRIGHT VINIMAY PRIVATE LIMITED,KOLKATA vs. INCOME TAX OFFICER, KOLKATA

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ITA 2150/KOL/2024Status: DisposedITAT Kolkata31 January 2024AY 2019-20Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI PRADIP KUMAR CHOUBEY (Judicial Member)3 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to the TDS credit of the amalgamated companies. The issue was restored to the AO for necessary verification and to allow the TDS credit.

What were the facts?

The assessee company, after amalgamating with four transferor companies, claimed TDS credit of ₹5,09,976/-. The AO disallowed this credit during processing, and the CIT(A) dismissed the assessee's appeal due to a delay without condoning it.

What were the issues?

Whether the assessee is entitled to claim TDS credit of transferor companies merged with it, and whether the CIT(A) erred by not condoning the delay in filing the appeal.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

For Appellant: Shri Abhishek Bansal, AR
For Respondent: Shri Sailen Samadder, DR
Hearing: 07.01.2025Pronounced: 31.01.2025

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 11.09.2024 for the AY 2019-20.

2.

The only issue raised by the assessee in various ground of appeal is against the order of ld. CIT (A) upholding the order of the ld. AO, wherein the ld. AO has denied the TDS credit of ₹5,09,976/- of transferor companies which were duly amalgamated with the assessee company with effect from 01.04.2018, vide order of NCLT dated 30.09.2019.

4.

After hearing the rival contentions and perusing the materials available on record, we note that four companies namely; Everbright Vinimay Pvt. Ltd., Jiban Jyoti Vinimay Pvt. Ltd., Perfection merchants Pvt. Ltd. and Vijaypath Retails Pvt. Ltd. were amalgamated with the assessee company vide amalgamation order dated 30.09.2019, with effect from appointed date i.e. 01.04.2018. The copy of the said order is available at page no.1 to 45 of the Paper Book. The assessee accordingly incorporated the income of these companies as well as the TDS deduction on behalf of four transferor companies and accordingly the income was computed and TDS refund was also claimed. However, we note that during the processing of the return u/s 143(1) of the Act, the TDS credit of ₹5,09,976/- was denied to the assessee which was related to the transferor of companies which were merged with the assessee company vide NCLT order as stated hereinabove. The assessee also filed reconciliation of income tax as per Profit and Loss account and as per form no.26-AS, before us which is available at page no.163 and 164 of the Paper Book. We find that the assessee is

5.

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

Order pronounced in the open court on 31.01.2025.

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