VIKAS AGGARWAL,NEW DELHI vs. ITO WARD - 41(1), NEW DELHI

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ITA 8648/DEL/2019Status: HeardITAT Delhi12 June 2023AY 2014-154 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that credit for TDS cannot be granted when the deducted amount has not been deposited. However, in the interest of justice, the AO was directed not to take recovery action for the outstanding tax liability.

What were the facts?

The assessee claimed credit for TDS of Rs. 21,13,864/-. The payer deducted this amount at source but failed to deposit it with the government.

What were the issues?

Whether the assessee is entitled to credit for TDS when the deductor has failed to deposit the same with the government.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI

Before: SH. SAKTIJIT DEY & SH. N. K. BILLAIYA

For Appellant: CA Sh. Tarun Kumar Pal, CA
Hearing: 12/06/2023Pronounced: 12/06/2023

PER N. K. BILLAIYA, AM:

1.

This appeal by the assessee is preferred against the order of the CIT(A)-14, New Delhi dated 26.08.2019 pertaining to A.Y.2014-15.

2.

The solitary grievance is that the CIT(A) erred in not giving credit of TDS of Rs.21,13,864/-. The entire quarrel can be understood from the following chart :-

3.

There is no dispute that the payer of the rent have deducted tax at source amounting to Rs.21,13,864/-. It is also an undisputed fact that the said TDS amount has not been deposited to the credit of the Government and, therefore, the same was denied.

4.

On such facts we cannot direct the AO to give the credit of TDS. The appeal of the assessee has to be dismissed.

5.

However, in the interest of justice it would not be out of place to quote the following CBDT circular :-

6.

In the light of the aforementioned CBDT circular, though we have dismissed the appeal of the assessee, yet we direct the AO not to take any recovery action for the outstanding tax liability keeping in mind the mandate of aforestated CBDT circular. With these directions the appeal is dismissed.

7.

Decision announced in the open court on 12.06.2023.

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