Appellate Tribunal grants INR 1.1 crore tax credit to assessee, citing AO's duty breach.

The Appellate Tribunal ruled in favor of the assessee, directing the AO to grant the credit of advance tax paid amounting to INR 1,10,00,000. The Tribunal held that the AO's failure to recognize the legitimate credit reflected in Form 26AS was a breach of statutory duty under section 219 of the Income Tax Act. Consequently, the impugned order of the CIT(A) was set aside, and the assessee's grounds were allowed.

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Issues involved:
The denial of credit of advance tax paid by the assessee amounting to INR 1,10,00,000.

Issue 1: Denial of legitimate credit of advance tax
The assessee challenged the order denying legitimate credit of advance tax paid, arguing that it was otherwise allowable and could not be claimed in the return of income. The Appellate Tribunal found that the AO erred in not granting the credit for advance tax paid, which was duly reflected in Form 26AS. The Tribunal held that the AO's failure to rectify this mistake, despite it being pointed out by the assessee, was a breach of statutory duty under section 219 of the Income Tax Act. Consequently, the Tribunal directed the jurisdictional AO to grant the credit of advance tax amounting to INR 1,10,00,000 paid by the assessee during the financial year 2012-13. The impugned order of the CIT(A) was set aside, and the grounds raised by the assessee were allowed.

Conclusion:
The Appellate Tribunal ruled in favor of the assessee, allowing the appeal and directing the AO to grant the credit of advance tax paid. The Tribunal emphasized the statutory duty of the AO to grant such credit, especially when the amount was duly reflected in Form 26AS.

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