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2023 (12) TMI 765 - ITAT JODHPURRectification u/s 154 - AO rejected TDS Credit after issuance intimation U/s 143(1) - HELD THAT:- The assessee filed the return alongwith the relevant documents for executing the contract with the party which enclosed in APB. The relevant payment is also reflected in the bank account. Only for filing of TDS return and withdrawing the credit, the ld. AO has acted beyond jurisdiction to execute the withdrawal of credit and reduced the refund u/s 154. We find that rectification is only related to intimation U/s 143(1) read with section 139(1) of the Act. We find that there is a lack of verification in the point of the ld. AO section 154 is only restricted to filing of return u/s 139 and processing of intimation u/s 143(1). So, withdrawal of TDS is a separate activity of the deductor. The mere rejection of TDS credit is not serving the purpose. The transaction, execution of works and other evidence should be considered during withdrawn of TDS credit after processing of return U/s 143(1). The execution of section 154 can not be mechanical purpose. AO has acted beyond jurisdiction and rejection of TDS credit after issuance intimation U/s 143(1) is not come under the purview of section 154 of the Act related rectification apparent from the record. We further find that the entire demand U/s 154 is beyond jurisdiction. Therefore, considering the above, we set aside the appeal order and the demand is quashed. Assessee appeal allowed.
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