M/S. THE ORIENTAL INSURANCE COMPANY LTD.,MEERUT vs. ITO, MEERUT

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ITA 4355/DEL/2014Status: DisposedITAT Delhi22 December 2015AY 2008-096 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee should not be made to pay further demand and interest if challan mismatches occur, provided evidence of tax payment is produced. The Assessing Officer was directed to verify original challans and grant credit.

What were the facts?

The Oriental Insurance Company Ltd. faced demands for short deduction of tax and interest due to mismatches in TDS challans with the OLTAS system. Despite depositing the tax, credit was not granted, leading to appeals against the CIT(Appeals) order.

What were the issues?

Whether credit for TDS can be denied solely due to challan mismatches in OLTAS when tax has been deposited. The onus on the assessee to prove tax deposit despite system discrepancies.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, NEW DELHI

Before: SHRII.C. SUDHIR & SHRI PRASHANT MAHARISHI

Hearing: 14.12.2015Pronounced: 22.12.2015

ORDER Per Bench: 01. The above appeals have been preferred against the order of CIT(Appeals), Meerut, confirming the demands u/s. 201(1)/201(1A) of the Income-tax Act for assessment years 2008-09 and 2009-10 for various quarters. As all these appeals are arising either out of the short deduction of tax made by the assessee oron account of interest thereon, which was deposited but the challans didnot match with the OLTAS system of Income-tax Department and therefore, the credit for the same was not given, which resulted into short deduction of tax for various quarters of F.Y. 2007-08 and 2008-09.

2.

The Assessing Officer [ITO (TDS)], Meerut based on the e-TDS returns filed by the assessee for F.Y. 2007-08 and 2008-09 has raised following demands : Sr Appeal No F Y Amount Amount Total No Quarter of TDS of Interest and return form 1 4355/Del/2014 2007-08 6980 4939 11919 A Y 2008-09 1stQuarter 26Q 2 4356/Del/2014 2007-08 8601 8959 17560 A Y 2008-09 2ndQuarter 26Q 3 4357/Del/2014 2007-08 3970 7756 11726 A Y 2008-09 3rdQuarter 26Q 4 4358/Del/2014 2007-08 0 8580 8580 A y 2008-09 Q1 to Q4 24Q 5 4359/del/2014 2008 74460 37467 111927 A y 2009-10 1stQuarter 26Q 6 4360/Del/2014 2008 0 1883 1883 A Y 2009-10 2nd quarter 26Q 7 4361/Del/2014 2008 0 4536 4536 A Y 2009-10 3rd Quarter 26Q 2 8 4362/Del/2014 2008-09 0 7300 7300 A Y 2009-10 Q1 to Q 4 24Q

3.

Against the order of the Assessing Officer, the assessee preferred appeal before the CIT (A), who dismissing the appeal of the assessee held that as the taxes paid by the assessee are not reflected in OLTAS, the assessee should have filed rectification application and further as those TDS challans are mismatched with the OLTAS system, no credit can be granted to the assessee. He further held that the appellant has utterly failed to discharge the onus cast upon it and therefore, he confirmed the demands.

4.

None appeared for the assessee. Therefore, the issue is decided on the basis of information available on record. 05. The learned Departmental Representative, on the other hand, submitted that as the tax deposited by the assessee is not reflected in OLTAS, credit cannot be given to the assessee till full verification of tax so paid is made and, therefore, he submitted that as in another ground of appeal, the assessee has submitted that there is no short deduction of tax and full tax has been deposited, the matter should be sent back to the AO for verification and then to grant credit for the same.

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