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TMI Blog2024 (11) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, the tenant had deducted the tax while making the rental payments but failed to deposit the same into the Central Government. Before the Ld.CIT(A) as well as before this Tribunal, the assessee had given the details of the deductor but the Ld.CIT(A) had not taken any steps to ascertain the facts based on the details furnished by the assessee. We are of the view that the CIT(A) could have sought for a remand report from the AO through which the genuineness of the claim of the assessee could have been verified. On the other hand, the CIT(A) could have remitted the issue to the AO to verify the genuineness of the claim and if the claim of the assessee is found correct, then the AO could have desisted from collecting the tax due fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d return was processed u/s. 143(1) of the Act and an intimation was generated on 12/10/2023 in which a demand of Rs. 1,20,000/- was made. In the intimation, in table B, it was mentioned that mismatch between tax credits claimed and allowed and the reasons for the said mismatch was mentioned as form 26AS does not contain amount of TDS /TCS with respect to the TAN mentioned in Schedule TDS-1/TDS 2 /TCS. As seen from the intimation, the exact amount of TDS deducted by the tenant tallies with the demand now raised and at that time only, the assessee came to know that the tenant had not remitted the TDS amount deducted. The assessee challenged the said intimation before the Ld.CIT(A) and contended that the tenant had deducted the TDS amount whil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw cited was different from the appellant's case. 5 The order of the CIT(A) is bad in law since the points raised by the appellant were not properly considered. 6 In support of the appellant's contention that credit should not be denied, the appellant's cites the following decisions: i) PCIT Vs Jagjit Singh (2024) 336 CTR 634 (Del) ii) Incredible Unique Buildcon Pvt. Ltd. Vs. ITO (2024) 337 CTR 129(Del) iii) BDR Finvest Pvt. Ltd. Vs. DCIT (2024) 462 ITR 141(Del). 7 Without prejudiced to the above, the appellant submits that the impugned adjustments of denying credit were not a type of adjustment permissible under section 143(1). 8 For these and other grounds that may be urged at the time of hearing it is prayed that suitable dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details about the tenant along with the TAN Number. The Ld.CIT(A) mainly relied on the provision 199 and rule 37BA of the rules and rejected the claim of the assessee. The Ld.CIT(A) has also given a finding that the case law quoted by the appellant differs on facts and circumstances and it is not applicable in her case . 7. We have perused the judgments relied on by the Ld.AR and in all the judgments, the Hon ble Delhi High Court had dealt with the similar situations and gave a clear finding that once the payer / deductor, who acts as an agent of the Central Government, has retained money towards tax (though not deposited with the Government), credit for the same cannot be denied, having regard to the consequences and the modes availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tionale being what the revenue cannot do directly, it is impermissible for it to reach the same end indirectly . 10. In all the judgements cited supra, the Hon ble High Court had clearly pointed out that the assessee cannot be proceeded for the recovery of the tax dues when the deductor had deducted the tax but not paid to the Central Government. In the present case, we find from the documents submitted by the assessee, the tenant had deducted the tax while making the rental payments but failed to deposit the same into the Central Government. Before the Ld.CIT(A) as well as before this Tribunal, the assessee had given the details of the deductor but the Ld.CIT(A) had not taken any steps to ascertain the facts based on the details furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X
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