HEMANT CHOPRA,NEW DELHI vs. ACIT CIRCLE-70(1), DELHI

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ITA 6160/DEL/2024Status: DisposedITAT Delhi27 August 2025AY 2021-223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee, a salaried individual, declared income from a success bonus of Rs. 1,27,28,304/-, claimed TDS of Rs. 45,82,189/-, and also deposited Rs. 8,05,250/- as additional income tax. It was noted that there was a failure on the part of the employer to deposit TDS of Rs. 45,42,189/-. The assessee had submitted a letter from the employer regarding the bonus and emails requesting Form 16. In the interest of justice, the Tribunal set aside the orders of the Ld. CIT(A) and Ld. AO. The matter was restored to the file of the Ld. AO with directions to verify the factum of TDS deduction by the employer and decide the issue afresh after providing a fair opportunity of hearing to the assessee. The Tribunal did not decide the issue on merits but remanded it for verification.

What were the facts?

The assessee, Hemant Chopra, filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order dated 05.12.2024 of the Commissioner of Income Tax (Appeals) (CIT(A)). This order arose from a rectification order dated 02.12.2022 passed by the Additional/Joint Commissioner of Income Tax (AO) under Section 154 of the Income Tax Act, 1961. The assessment year in question is 2021-22. The assessee had declared a total income of Rs. 2,34,42,860/- in his return. The initial processing under Section 143(1) on 04.10.2022 confirmed the declared income but noted a short TDS credit of Rs. 45,82,189/-. The assessee's subsequent rectification application under Section 154 was decided by the AO on 02.12.2022, disallowing TDS credit of Rs. 45,82,139/-. The CIT(A) dismissed the assessee's appeal against this order.

What were the issues?

1. Whether the Learned CIT(A) erred in not granting credit for TDS of Rs. 45,82,139/- on a success bonus of Rs. 1,27,28,304/- which was included in the salary income, thereby violating principles of natural justice (Question of law and fact, turning on principles of natural justice and TDS provisions). Assessee's contention: The Learned CIT(A) erred in not granting credit for TDS of Rs. 45,82,139/- on the success bonus of Rs. 1,27,28,304/- included in salary income, against principles of natural justice. Revenue's contention: The assessee failed to adduce evidence before the Departmental Authorities.

Which sections of the Income-tax Act were involved?

Section 250,Section 154,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI S RIFAUR RAHMAN & SHRI VIMAL KUMAR

For Appellant: Shri Sushil Kumar Chadha, CA
For Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR
Hearing: 25.08.2025Pronounced: 25.08.2025

ORDER

PER VIMAL KUMAR, JUDICIAL MEMBER:

1.

The appeal of the assessee is against order dated 05.12.2024 of Learned Commissioner of Income Tax (Appeals), Mysore (hereinafter referred as “the Ld. CIT(A)”) under Section 250 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) arising out of rectification order dated 02.12.2022 of the Learned Additional/Joint Commissioner of Income Tax, New Delhi (hereinafter referred as “the Ld. AO”) under Section 154 of the Act in respect of assessment order dated 04.10.2022 for assessment year 2021-22.

2.

Brief facts of the case are that the appellant/assessee filed return of income of Rs.2,34,42,860/- for assessment year 2021-22. The return was processed under Section 143(1) of the Act on 04.10.2022 determining total income as declared by assessee in the return. In order under Section 143(1) of the Act, assessee was given short TDS credit of Rs. 45,82,189/-. The assessee filed rectification application under Section 154 of the Act which was decided on 02.12.2022 not giving TDS credit of Rs.45,82,139/- as claimed in the return by the Ld. AO.

3.

Against order dated 02.12.2022, the appellant/assessee filed appeal before Ld. CIT(A) which was dismissed vide order dated 05.12.2024.

4.

Being aggrieved, the appellant/assessee preferred present appeal.

5.

Learned Authorised Representative for the appellant/assessee submitted that Ld. CIT(A) erred in not giving credit of TDS of Rs.45,82,139/- on bonus of Rs.1,27,28,304/- being included in salary income against principles of natural justice.

6.

Learned Authorised Representative for the Revenue submitted that assessee failed to adduce evidence before the Departmental Authorities.

7.

From examination of record in light of aforesaid rival contentions, it is crystal clear that the appellant/assessee, a salaried person, declared income on

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