SHRI NAVNEET SINGH,AMRITSAR vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, AMRITSAR

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ITA 266/ASR/2022Status: DisposedITAT Amritsar28 April 2023AY 2022-213 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the issue of TDS disallowance was settled by the rectification order and the reduced demand was paid, the CIT(A)'s order had become infructuous. Therefore, the appeal was allowed.

What were the facts?

The assessee challenged an addition of Rs. 8,84,661/- on account of disallowance of TDS. However, the addition was subsequently reduced to Rs. 25,400/- by a rectification order passed by the CPC.

What were the issues?

Whether the CIT(A)'s order confirming a TDS disallowance is valid when the demand has been rectified and paid.

Which sections of the Income-tax Act were involved?

Section 43B,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 27.04.2023Pronounced: 28.04.2023

This appeal has been filed by the assessee against the order of the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated 02.11.2022 in respect of Assessment Year: 2020-21 challenging therein

Navneet Singh v. DCIT/ACIT confirming of an addition of Rs.8,84,661/- on account of disallowance of TDS u/s 43B.

2.

At the outset, the ld. counsel for the assessee has submitted that the ld. CIT(A) has erred in law and on facts of the case in confirming the addition of Rs.8,84,661/- on account of disallowance of TDS u/s 43B, since the aforesaid sum of Rs.8,84,661/- has been reduced to Rs.25,400/- by rectification order passed by CPC, Bengluru vide rectification order u/s 154 of the I.T. Act, 1961, dated 03.06.2022 whereby the net payable demand has been reduced to Rs.25,400/- (APB pg. 24 & 25 of the order). The ld. counsel has contended that the said demand has been duly paid by the assessee vide Challan No. 03971 and BSR Code 0014431 dated 07.12.2022 (APB pg. no. 10). He prayed that the issue of the addition made on account of TDS stand settled by way of rectification order passed by the CPC (supra). Hence, the impugned order become infructuous and may be quashed accordingly.

3.

Per contra, the ld. DR has not disputed the facts as regard to the demand settled by way of rectification order passed by the CPC(supra).

4.

We have heard both the sides, perused the material on record. It is evident from the rectification order passed u/s 154 of the I. T. Act dated

Navneet Singh v. DCIT/ACIT 03.06.2022 by CPC, Bengluru, Tax demand was reduced to Rs.25,400/- (APB pg. no. 24 of the rectification order). Further, the assessee without contesting, deposited, the balance tax demand of Rs.25,400/- vide Challan No. 03971 dated 07.12.2022 (APB pg. no. 10). Since, the issue stand settled by way of rectification order passed by the CPC, Bengluru, and therefore, the order passed by the ld. CIT(A) becomes infructous and accordingly, the appellant assessee request to withdraw this appeal is allowed.

5.

Accordingly, the order of the CIT(A) is held to be perverse to the facts on the record and as such quashed.

6.

In the result, the appeal filed by the assessee is allowed.

Order pronounced in the open court on 28.04.2023

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