2017 (6) TMI 295 - AT - Income Tax

Credit of TDS without filing revised return after assessment - rectification u/s 154 - Held that - CIT(A) was right in accepting the revised claim regarding grant of credit for TDS. This was a process of determination of correct tax liability of an Assessee and therefore the first appellate authority was fully justified in directing the AO to give credit to TDS on the basis of fresh claim in an application u/s.154 of the Act, supported by TDS certificate. We find no grounds to interfere with the order of the CIT(A).

Summary

Issues:
- Claim for TDS credit without filing a revised return of income.
- Power of the CIT(A) to entertain new claims in the absence of a revised return.

Analysis:

Issue 1: Claim for TDS credit without filing a revised return of income
In this case, the Assessee initially filed its return for AY 2008-09, claiming TDS credit of a specific amount. Subsequently, the Assessee realized it had missed claiming TDS credit for additional amounts and filed a petition under section 154 to rectify this omission. The AO rejected the petition, stating that a revised return should have been filed. The Assessee appealed to the CIT(A), citing judicial precedents where TDS credit claims were allowed without revising the return. The CIT(A) agreed with the Assessee, considering the supporting documents submitted and directed the AO to verify and allow the TDS credit if found in order. The Tribunal upheld the CIT(A)'s decision, emphasizing that the Assessee had the right to make new claims during assessment proceedings without revising the return, as established by various legal interpretations.

Issue 2: Power of the CIT(A) to entertain new claims in the absence of a revised return of income
The Tribunal discussed the power of the CIT(A) to entertain new claims without a revised return, referencing the Supreme Court's decision in Goetze (India) Ltd. The Tribunal highlighted that the CIT(A) has the authority to consider fresh claims even without a revised return, especially when the claim is made during the assessment proceedings and not contrary to the original return. Judicial pronouncements, including the Punjab and Haryana High Court's ruling in CIT vs Ramco International, supported the view that the CIT(A) could accept revised claims for TDS credit based on fresh applications under section 154 supported by relevant documents. The Tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s decision to grant TDS credit without the requirement of a revised return, thus establishing the validity of the Assessee's claim and the CIT(A)'s authority in this regard.

This detailed analysis of the legal judgment showcases the intricacies of the issues involved, the arguments presented by the parties, and the legal principles applied by the authorities to arrive at a decision.