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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: Shri Waseem Ahmed & Shri Siddhartha Nautiyal
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH VIRTUAL COURT ] Before: Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member
ITA No. 163 /Rjt/2018 Assessment Year 2015-16
Pooja Exports, The ACIT Doraji Road, TDS CPC, Jetpur Vs Bangalore PAN: AACFP7744C (Respondent) (Appellant)
Assessee by: None Revenue by: Shri B.D. Gupta, Sr. D.R. Date of hearing : 18-10-2022 Date of pronouncement : 19-10-2022 आदेश/ORDER PER :SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER :- This assessee’s appeal for A.Y. 2015-16, arises from order of the CIT(A), Jamnagar dated 27-03-2018, in Appeal No. CIT(A)/Jam/117/17- 18/1544, proceedings under section 154 of the Income Tax Act, 1961; in short “the Act”.
I.T.A No. 163/Rjt/2018 A.Y. 2015-16 Page No. 2 Pooja Exports vs. ACIT
The assessee has taken the following grounds of appeal:-
“1) THE LEARNED DEPARTMENT HAS ERRED IN HOLDING THAT THERE IS SHORT PAYMENT OF 51677 AND WRONGLY RAISED THE DEMAND WITHOUT ANY JUSTIFICATION AND CLARIFICATION.
2) HE LEARNED DEPARTMENT HAS ERRED IN HOLDING THAT THERE IS INTERST 3898.50 AND WRONGLY RAISED THE DEMAND WITHOUT ANY JUSTIFICATION AND CLARIFICATION.
3) ANY OTHER GROUND THAT MAY BE RAISED AT THE TIME OF HEARING.”
The brief facts of the case are that the assessee filed quarterly statement for TDS for financial year 2014-15. The said statement was processed and demand was raised against the assessee for short deduction of taxes amounting to � 51,677/- and further interest was imposed for the above short deduction amounting to � 3,898/-. Against the same, the assessee filed rectification application and the AO passed order under section 154 of the Act on 21-08-2015, wherein the demand was neither reduced nor deleted. The assessee preferred an appeal before Ld. CIT(A), who dismissed the assessee’s appeal with the following observations:
“Decision :
I.T.A No. 163/Rjt/2018 A.Y. 2015-16 Page No. 3 Pooja Exports vs. ACIT
The grounds of appeal of the appellant are reproduced in initial paragraph of this appeal order. The submission dated 16/11/2017 of the appellant with regard to its grounds of appeal is not found to be tenable. The fact is that there was short deduction of tax at source to the extent of Rs. 51,677/- and therefore, ACIT, CPC Ghaziabad has correctly passed the order by holding the appellant as assessee in default. The ACIT, CPC Ghaziabad has also correctly charge the interest of Rs. 3,898.50/- on the short payment of Rs. 51,677/-. The appellant in his submission dated 16/11/2017 has relied upon decision of hon'ble Supreme Court in the case of M/s. Hindustan Coca Cola Beverage Vs. CIT, 293 ITR 226. But in my opinion ratio of this decision of Hon. Supreme Court and also circular no. 275/201/95-IT dated 29/01/1997 are not applicable to the case of the appellant in view of the fact that the appellant has not been able to furnish any evidences and details to show that the payee has shown the amount/income received from the appellant as his income in his return of income filed for the year under consideration and has paid due tax-on the same. In absence of any proof, the submission dated 16/11/2017 of the appellant is rejected and the addition of Rs. 51,677/- on account of short payment as made by the ACIT,CPC Ghaziabad and also levy of interest of Rs. 3,898.50/- on this short payment are hereby confirmed. Thus the grounds of appeal of the appellant are dismissed.
In result, the appeal of the appellant is dismissed.”
I.T.A No. 163/Rjt/2018 A.Y. 2015-16 Page No. 4 Pooja Exports vs. ACIT
The assessee is in appeal before us against the aforesaid additions confirmed by Ld. CIT(A). Before us, the assessee filed written submission dated 23-07-2022, in which the assessee submitted that the total tax deducted at source is �1,04,874/- and the same is verifiable from Form Number 27A and the acknowledgement thereof for the TDS quarterly statement pertaining to FY 2014-15 for Quarter 4, has been paid in total. The assessee enclosed copies of Challaan amounting to � 1,04,874/-for our perusal.
In response, the Revenue filed submission dated 15-09-2022, in which it submitted “Justification Report” which states that “it appears that the assessee has in fact deposited the taxes as per columns 3,4 and 5, however, credit for the same is not available, which may be on account of technical issues as seen From Number 8 of the table enclosed. Accordingly, the assessee may be directed to take up the matter with the CPC TDS Ghaziabad for rectifying the matter and Tribunal may accordingly give appropriate directions.”
We have perused the rival contentions and the material on record. In our view, from the records, it seems that the assessee has in fact deposited TDS and there is no short deduction of TDS (as evident from the “Justification Report” submitted by the Revenue). Accordingly, the matter is being restored to the file of the concerned Assessing Officer, who is directed to grant necessary credit to the assessee for TDS deducted and delete demand on account of short deduction of TDS and consequential interest. In our view, in the instant case, the assessee has deducted and deposited TDS
I.T.A No. 163/Rjt/2018 A.Y. 2015-16 Page No. 5 Pooja Exports vs. ACIT
within time, but due to a technical error in CPC site, the assessee has not been granted credit of TDS, for no default on behalf of the assessee. In view of the above circumstances cited before us, in our considered view, it is a fit case where the assessee should be granted necessary credit of TDS paid by Ld. Assessing Officer and he may accordingly internally coordinate with CPC so that the assessee does not have to undergo any further difficulty / inconvenience for no default on his part.
In the result, appeal of the assessee is allowed. The file is being restored to the Ld. Assessing Officer with the necessary directions as above.
Order pronounced in the open court on 19-10-2022
Sd/- Sd/- (WASEEM AHMED) (SIDHHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 19/10/2022 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order,
Assistant Registrar, Income Tax Appellate Tribunal, Rajkot