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2021 (9) TMI 999 - AT - Income TaxCredit of TDS - HELD THAT - Pursuant to the CIT(A) s order, the A.O. has given effect by giving TDS credit for a sum of ₹ 2,53,376 instead of ₹ 2,94,511 claimed by the assessee. The prayer of the assessee assessee is entitled to credit for TDS for a sum of ₹ 2,94,511 or 2,78,403 as the case may be u/s 199 r.w.s. 205. The assessee has given a chart giving the details of TDS credit claimed by the assessee for the assessment year 2016-2017. There is no reason given by the A.O. in his order giving effect of the order (order dated 18.01.2019) why the TDS credit has been limited to ₹ 2,53,376. We direct the A.O. to grant the benefit of TDS claimed by the assessee in respect of income disclosed for assessment year 2016-2017 in view of the provisions of section 199 r.w.s. 205 (also refer to Rule 37BA(iii) of the Income Tax Rules, 1962. With these directions, we restore the issue to the files of the A.O. A.O. is directed to afford a reasonable opportunity of hearing to the assessee - Appeal filed by the assessee is allowed for statistical purposes.
Issues:
Delay in filing appeal, Condonation of delay, Credit for TDS, Rectification application, Judicial pronouncements on TDS credit. Delay in filing appeal: The appeal was filed with a delay of 448 days, and the assessee sought condonation of delay citing reasons such as filing a rectification application before the CIT(A) and the impact of the Covid-19 lockdown. The Standing Counsel argued that the appeal should not have been filed while pursuing a remedy under Section 154 of the Income Tax Act. The Tribunal found that the delay was due to the hope of relief from the first appellate authority and the lockdown, and there was sufficient cause for the delay. Consequently, the delay was condoned, and the appeal was heard on merits. Credit for TDS: The case involved a dispute regarding the credit for TDS claimed by the assessee for the assessment year 2016-2017. The CPC initially gave credit for a lesser amount of TDS than claimed by the assessee. Subsequently, the CIT(A) directed further credit based on TDS information in Form No. AS-26. The assessee then filed a rectification application, which was not disposed of by the CIT(A), leading to the appeal before the ITAT. The Tribunal, after considering the submissions and judicial pronouncements cited by the assessee, directed the Assessing Officer to grant the benefit of TDS claimed by the assessee in accordance with the provisions of the Income Tax Act. The issue was restored to the files of the A.O. with directions to provide a reasonable opportunity of hearing to the assessee. Rectification application: The assessee filed a rectification application after the CIT(A) order, seeking further credit for TDS. However, this application was not disposed of by the CIT(A), prompting the appeal to the ITAT. The Tribunal considered this sequence of events and directed the A.O. to grant the TDS credit claimed by the assessee for the assessment year 2016-2017 in line with the relevant provisions of the Income Tax Act and the Income Tax Rules. Judicial pronouncements on TDS credit: The learned AR submitted various judicial pronouncements in support of the assessee's entitlement to TDS credit. These cases were cited to argue for the full credit of TDS claimed by the assessee, emphasizing the provisions of section 199 r.w.s. 205 of the Income Tax Act. The Tribunal considered these case laws and directed the A.O. to provide the benefit of TDS as claimed by the assessee, ensuring compliance with the relevant legal provisions. In conclusion, the ITAT Bangalore, in its judgment dated September 22, 2021, allowed the appeal filed by the assessee for statistical purposes, focusing on the issues of delay in filing the appeal, credit for TDS, rectification application, and the application of judicial pronouncements on TDS credit. The Tribunal emphasized the importance of following due process and ensuring that the assessee receives the entitled benefits under the Income Tax Act.
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