9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 1370 - AT - Income TaxRectification of mistake u/s 154 - Credit of TDS - HELD THAT - As submitted that the appeal filed by the assessee before the learned CIT(A) and the impugned order passed by the CIT(A) disposing of the said appeal has become infructuous and urged that the same may be cancelled. After having perused the copy of the order passed by the Assessing Officer under Section 154 of the Act - copy of which is placed on record before us, we are inclined to accept the contention of the learned Counsel for the assessee. Even the DR has not raised any objection in this regard. We accordingly set aside the impugned order passed by the learned CIT(A) and allow this appeal of the assessee.
Issues:
1. Disallowance of full credit of TDS as claimed by the appellant. 2. Application for rectification under Section 154 of the Income-tax Act, 1961. 3. Appeal against the order of the Commissioner of Income-tax (Appeals). 4. Disposal of appeal by the Tribunal. Issue 1: Disallowance of full credit of TDS: The appellant, a partnership firm, filed its income tax return claiming credit for TDS of Rs.32,28,248, but the Assessing Officer only granted credit for Rs.9,33,296, leading to a demand of Rs.20,97,939. Subsequently, the appellant sought rectification under Section 154, resulting in an increased credit of Rs.9,46,105 and a demand of Rs.20,83,376. The Commissioner of Income-tax (Appeals) decided the issue, directing the Assessing Officer to grant TDS credit for the relevant assessment years if the commensurate income was brought to tax in those years. The Commissioner emphasized the importance of Form 26AS and the correlation between TDS and income, instructing the AO to issue revised demand notices accordingly. Issue 2: Application for rectification under Section 154: The appellant filed an application for rectification under Section 154, which was disposed of by the Assessing Officer, granting full credit of TDS amounting to Rs.32,28,248 as claimed by the appellant. This rectification rendered the appeal before the Commissioner of Income-tax (Appeals) infructuous, leading to the impugned order being set aside by the Tribunal. Issue 3: Appeal against the order of the Commissioner of Income-tax (Appeals): The appellant, aggrieved by the decision of the Commissioner of Income-tax (Appeals), appealed before the Tribunal. The Tribunal, after hearing arguments from both sides and examining the order passed by the Assessing Officer under Section 154, allowed the appeal of the assessee, setting aside the order of the Commissioner of Income-tax (Appeals). Issue 4: Disposal of appeal by the Tribunal: The Tribunal, after considering the arguments and relevant material, accepted the contention of the appellant's counsel regarding the rectification under Section 154, which granted full credit of TDS. As the Departmental Representative did not object, the impugned order of the Commissioner of Income-tax (Appeals) was set aside, and the appellant's appeal was allowed by the Tribunal. In conclusion, the Tribunal's judgment favored the appellant by allowing full credit of TDS as claimed, emphasizing the importance of linking TDS credits with the corresponding income for the relevant assessment years. The rectification under Section 154 led to the cancellation of the appeal before the Commissioner of Income-tax (Appeals) and the subsequent setting aside of the impugned order by the Tribunal.
|
