HINDUSTAN LATEX FAMILY PLANNING PROMOTION TRUST,TRIVANDRUM vs. ASSISTANT DIRECTOR OF INCOME TAX (EXEMPTION), TRIVANDRUM

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ITA 674/COCH/2022Status: DisposedITAT Cochin30 November 2022AY 2019-20203 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that receipts reflected in books of accounts do not necessarily constitute income and TDS claims against them are allowable. The Assessing Officer was directed to verify the TDS claim and grant credit in accordance with law.

What were the facts?

The assessee claimed TDS credit of Rs. 178.40 Lacs, but was granted only Rs. 67.07 Lacs as it did not admit complete receipts reflected in Form 26AS. The assessee argued that certain receipts were for specific projects and not its income.

What were the issues?

Whether TDS credit can be granted for amounts received for specific projects which are not considered income of the assessee. Whether an order rejecting a rectification application under Section 154 is appealable.

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, COCHIN BENCH, COCHIN

Before: HON’BLE SHRI SATBEER SINGH GODARA, J.M & HON’BLE SHRI MANOJ KUMAR AGGARWAL, A.M

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 13-04-2022 in the matter of an intimation issued by CPC, Bengaluru u/s. 143(1) of the Act on 17-12-2020. The rectification - 2 - application filed by the assessee u/s 154 was dismissed. In the intimation, the assessee was granted TDS credit of Rs.67.07 Lacs as against Rs.178.40 Lacs as claimed by it. The same was due to the fact that the assessee did not admit complete receipts as reflected in Form 26AS and accordingly, in terms of Rule 37BA, the credit was restricted to corresponding receipts shown in the return of income.

2.

During appellate proceedings, the assessee submitted that it was a public charitable society and registered u/s 12AA. The major amounts appearing in Form 26AS represent amount received for specific projects which would not be assessee’s income. The same should be spent as per agreement entered into with the donor. The donors have deducted tax u/s 194C or 194J. However, Ld. CIT(A) held that the appeal was preferred against order passed u/s 154 dated 15.02.2021, the copy of which was not furnished along with Form No.

35.

The assessee filed the appeal against communication of CPC in response to a query / grievance filed by the assessee which is not an appealable order. Therefore, the appeal was dismissed on technical ground against which the assessee is in further appeal before us.

3.

The Ld. AR submitted that the communication received from CPC was in response to assessee’s rectification request u/s 154 dated 23.12.2020. The same was rejected by CPC and this order is an appealable order. Concurring with the same, we direct Ld. AO to verify the TDS claim of the assessee and grant TDS credit in accordance with law keeping in mind the decisions of Tribunal as enumerated in the impugned order. The receipts which are otherwise reflected in the books of accounts need not constitute income of the assessee and ITA No.674/Coch/2022 - 3 - TDS claim against the same would be allowable. The assessee is directed to provide requisite information.w 4. The appeal stand allowed for statistical purposes. Order pronounced on 30th November, 2022.

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