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2019 (12) TMI 152 - AT - Income TaxDenial of credit of tax deducted at source - Rectification u/s 154 - HELD THAT:- AO has passed specific directions u/s 154 allowing the assessee’s claim towards grant of TDS credit and only when the assessee received the cheque towards the income tax refund, there was apparent inconsistency between the order passed u/s 154 and the processing of the income tax refund wherein the assessee was not granted credit for the TDS which was directed to be allowed by the AO while passing the order u/s 154. Where the Department has accepted the claim of the assessee towards short credit of TDS, it should have suo-moto carried out the rectification and no cause of action lies with the assessee firm. Having said that, where the assessee feeling aggrieved has moved an appeal before the CIT(A), no doubt the order under appeal is order passed by the AO u/s 154 and the appeal should normally be filed within thirty days of receipt of the order. No fault lies with the assessee as it was under the impression that its claim has been accepted as apparent from reading of the rectification order passed u/s 154 and only on receipt of refund cheque, the assessee realized that the credit of TDS has still not been granted to it. The assessee has moved an appeal before the CIT(A) (on 25.07.2018) within a period of few days of receipt of refund cheque (on 3.07.2018). We therefore find that there is a reasonable cause beyond the control of the assessee in preferring the appeal before the ld CIT(A) and the delay so happened is hereby condoned. On merits, we find that it is undisputed fact that the assessee has offered an amount of ₹ 11 lacs received from M/s K. C. India Ltd. during the year. Therefore where the income has been offered to tax and brought to tax by the Assessing officer, the assessee is legal eligible and well within its right to claim corresponding TDS thereon amounting to ₹ 1,23,596/- as reflected in Form No. 26AS. The AO is accordingly directed to give the TDS credit of ₹ 1,23,596/- to the assessee.
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