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2023 (9) TMI 1156 - AT - Income TaxRectification application us 154 - Credit of TDS denied as barred by limitation - AO raised a demand in intimation u/s 143(1) of the Act without giving credit of the amount of the TDS - HELD THAT:- As assessee in the return of income mistakenly reported the amount of TDS as advance tax. But in the total, no excess claim of the tax has been made by the assessee. We do not understand why the AO raised a demand in intimation u/s 143(1) of the Act without giving credit of the amount of the TDS which was already appearing in form no. 26AS. A copy of said form has been filed by the assessee before the AO alongwith rectification application. Ignoring the TDS credit available to the assessee, and then raise the demand is abuse of the authority. The order of the AO passed u/s 143(1) of the Act is in gross negligence of his duty. In the case, neither in the order of the AO nor in the order of ld CIT(A) date of passing order u/s 143(1) has been provided nor such order has been placed on record by the Revenue. It was the onus of the AO to provide at least a copy of the order passed u/s 143(1) to the assessee before rejecting his application u/s 154 of the Act. The assessee has stated that said order was not received by him, therefore, it was not possible for him to file rectification within the stipulated period. Secondly, we note that as per section 254 ( 2) of the Act, an assessee or revenue can make an application for rectification before the Tribunal at any time within six months from the end of the month in which the order was passed . As respectfully, following the decision of Daryapur Shetkari Sahakari Ginning and Pressing Factory [2020 (12) TMI 84 - BOMBAY HIGH COURT] the period of four years for rectification of the order as stipulated in section 154(7) of the Act should be reckoned from the date from which the said order came to the knowledge of the assessee. In that case the application of the assessee would be within the limitation period. Further, in Liberty Pesticides & Fertilizer Ltd [2014 (1) TMI 248 - ITAT AHMEDABAD] held that the “Revenue cannot reject the rectification application on the ground that it was time barred, as A.O. failed to send intimation to the assessee specifying the sum so payable which was not the fault of assessee, hence application entertained”. In the instant case also, As here is no evidence on record that intimation u/s 143(1) was sent to the assessee, therefore, Assessing officer is not justified in rejecting the rectification application of the assessee invoking section 154(7) of the Act. It is not in dispute that tax deducted by the employer on the pension of the assessee has already gone to the exchequer of the Government of India and now denying the credit of the same to the assessee is gross injustice to the assessee. we set aside the order of Ld.CIT(A) on the issue in dispute and direct the AO to carry out necessary rectification order and give credit of the TDS against the tax liability of assessee. The Grounds raised by the assessee are accordingly, allowed.
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