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2024 (6) TMI 334 - AT - Income TaxRefund of excess taxes claimed by Assessee - Credit for TDS as difference in the amount of TDS and Advance Tax as computed by the Department from the one that was reflected in Form 26AS - difference between the amount as computed by the department actually chargeable under the Act and as reflected in Form 26AS actually paid by the Assessee for the relevant assessment year - HELD THAT - Clause (b) of section 240 of the Act is applicable in this case and the Assessee becomes eligible to get the refund - Assessment was completed and the refund of the excess was to be payable to the Assessee which was not given. The computation of the tax payable by or refund due to the Assessee is determined only after adjusting the amounts of tax deducted at source tax collected at source any advance tax paid etc. by the Assessee from the tax which was required to be paid by it as per section 143(1)(c) of the Act. The refund generated to the Assessee was Rs. 65, 99, 880/- whereas the correct refund was Rs. 73, 40, 257/-. Hence refund was short paid to the Assessee by Rs. 7, 40, 377/-. Since the Assessee had already paid this amount in the form of Advance tax and TDS refund was to be given to it. The excess tax paid by the Assessee can clearly be seen from Form 26AS of the AY 2010-11 Advance tax paid amounting to Rs. 33, 71, 360/- and Tax deducted at source Rs. 44, 68, 604/-. The Assessee has shown the same in his previous replies also by attaching Form 26AS. The question here is not claiming any deduction or exemption simply the refund of the prepaid taxes which have been paid by the Assessee in excess to the Government treasury and ought to be refunded to the Assessee. Hence we direct the revenue authorities to refund the amount due for the assessee along with the eligible interest as per provisions of Section 244A of the Income Tax Act 1961. Appeal of the assessee is allowed.
Issues involved: The only issue involved in this case is according of credit of TDS to the assessee.
Assessment under section 143(3) and 263: The Assessee filed return of income for the AY 2010-11 on 01.10.2010. The assessment under section 143(3) was completed on 25.10.2012, later revised under section 263 on 15.03.2016. Appeal before CIT(Appeals) and ITAT: Assessee appealed before CIT(Appeals) against additions made, partly allowed. Both Assessee and Revenue appealed before ITAT against the CIT(Appeals) order. Refund of excess taxes claimed by Assessee: Assessee claimed refund of Rs. 7,40,377/- due to discrepancies in TDS and Advance Tax amounts as per Form 26AS. Disposal of refund claim by AO and CIT(A): AO and CIT(A) rejected Assessee's claim for refund stating it was not claimed during assessment proceedings under section 143(3). Appeal under section 154 and dismissal by CIT(Appeals): Assessee filed appeal under section 154 seeking refund, dismissed by CIT(Appeals) citing limitation under Section 154(7). Tribunal's decision on refund claim: Tribunal held that the Assessee is entitled to refund of excess taxes paid, citing relevant sections of the Income Tax Act and a similar case precedent. Directed revenue authorities to refund the amount due to Assessee with eligible interest. In conclusion, the Tribunal allowed the appeal of the assessee, directing the revenue authorities to refund the excess taxes paid by the Assessee along with eligible interest as per the provisions of the Income Tax Act.
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