TMI Blog2019 (12) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax and the remaining TDS credit is carried forward to the next years. On perusal of the records, it was noticed that an amount of ₹ 11 lacs received from M/s K.C. India Ltd was booked under professional fees and duly offered to tax in the return of income. However due to an over site by the assessee, the corresponding credit of TDS amounting to ₹ 1,23,596/- was carried forward to subsequent year and the assessment proceedings were completed accordingly. Subsequently, the assessee moved an application for rectification of mistake u/s 154 on 10.03.2017 seeking credit of TDS in respect of income already offered to tax and pursuant thereto, the AO passed the rectification order dated 29.09.2017 where the claim of the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder u/s 154 was passed on 29.09.2017, there was delay in filing the appeal and therefore the appeal of the assessee was dismissed at admission stage. In this regard, it was submitted by the ld. AR that as far as the order passed by the AO u/s 154 is concerned, the assessee prayer was accepted by the AO. Therefore, there was no cause of action which lies with the assessee at that point in time in terms of moving any appeal before the ld. CIT(A). However, only when the assessee received the cheque of income tax refund pursuant the order of section 154, it was realized that even though the directions have been given to allow the credit towards TDS, however, the same was not given effect to while processing the payment towards the refund chequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the TDS which was directed to be allowed by the AO while passing the order u/s 154 of the Act. Therefore, 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 ld 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. However, in the instant case, 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 pas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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