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2014 (4) TMI 960 - AT - Income TaxDismissal of TDS - Amount was not claimed in the return Applicability of section 155(14) of the Act Held that - Assessee contended that the provision of section 155(14) of the Act was brought into statute by Finance Act 2002 w.e.f. 1.6.2002 - the CIT(A) wrongly placed reliance on the provision in the order in disallowing legal contentions of the assessee thus, the reliance placed by the CIT(A) wrongly placed reliance on the provisions of section 155(14) of the Act which was not applicable to the assessment year of the present case i.e. 2001-02 Decided in favour of Assessee. Dismissal of appeal u/s 154/143(1) of the Act Claim of TDS credit - The provisions of section 155(14) of the Act are not applicable which is related to AY 2001-02 - the assessee company requested to allow additional credit of various TDS certificates which were not claimed while filing the return of income and this request made u/s 154 of the Act was rejected by the AO by holding that the assessee has not claimed the TDS certificate while filing of return which is not a proper and justified approach - claim of the assessee in regard to credit of additional TDS certificates is remitted back to the AO for verification and examination Decided in favour of Assessee.
Issues:
1. Disallowance of TDS credit by Assessing Officer under section 154/143(1) of the Income Tax Act. 2. Applicability of section 155(14) of the Act for the assessment year 2001-02. 3. Dismissal of appeal by Commissioner of Income Tax(A) regarding TDS credit. Issue 1: Disallowance of TDS credit by Assessing Officer under section 154/143(1) of the Income Tax Act: The appeal was filed against the Commissioner of Income Tax(A)'s order dated 26.08.2011. The Assessing Officer initially accepted the income as returned by the assessee under section 143(1)(a) of the Act. Subsequently, scrutiny was conducted regarding unsecured loans, fixed assets additions, and deduction u/s 80HHC. The Assessing Officer verified the details and accepted the returned income. The assessee later filed an application under section 154 of the Act claiming short credit of TDS and excessive taxes. The Assessing Officer rectified the mistake apparent from the record but denied credit for additional TDS certificates not claimed during the original return filing. Issue 2: Applicability of section 155(14) of the Act for the assessment year 2001-02: The Commissioner of Income Tax(A) disallowed the TDS credit based on section 155(14) of the Act, which allows credit for TDS if claimed in the return filed within two years from the assessment year. The assessee received additional TDS certificates after filing the return but claimed them separately. The Tribunal held that section 155(14) was not applicable for the assessment year 2001-02, as it was introduced by the Finance Act 2002. Consequently, grounds 2 and 2.1 of the assessee were allowed. Issue 3: Dismissal of appeal by Commissioner of Income Tax(A) regarding TDS credit: The Commissioner of Income Tax(A) dismissed the appeal, stating that the TDS claim was not made in the return filed and certificates were not submitted within the stipulated time frame. The Tribunal found that the Commissioner erred in dismissing the appeal and upheld the legal contentions of the assessee. It was established that the TDS certificates were received after the return filing, justifying the delayed claim. The Tribunal directed the Assessing Officer to verify the claim of additional TDS certificates and include the income related to them in the returned income, allowing the appeal for statistical purposes. In conclusion, the Tribunal ruled in favor of the assessee, highlighting the importance of considering the practical aspects of TDS claims and ensuring substantial justice in tax credit matters. The judgment emphasized the need for a balanced approach between technicalities and the core principles of tax law to achieve a fair outcome for the taxpayer.
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