ITAT Orders Full TDS Credit to Licensed Commission Agent for AY 2023-24 Based on Consistency Principle.

The ITAT set aside the orders of the Ld. Revenue Authorities, directing the AO to grant full TDS credit to the appellant, a licensed commission agent, for AY 2023-24. The Tribunal's decision was influenced by the consistency principle and a previous ruling, affirming that the appellant is entitled to the entire TDS amount deducted.

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Issues:
Appeal against order of Ld. Addl/JCIT (Appeals)2, Mumbai regarding TDS credit disallowance for AY 2023-24.

Detailed Analysis:
1. The appeal was filed against the order of the Ld. Addl/JCIT (Appeals)2, Mumbai, regarding the disallowance of TDS credit for the AY 2023-24 under section 143(1) of the Income Tax Act, 1961.
2. The appellant, an individual and licensed chillies commission agent, declared a total income of Rs. 28,94,330/- and claimed TDS credit of Rs. 1,07,543/- in the return filed. However, the Ld. AO granted TDS credit only for Rs. 8,053/-, disallowing Rs. 99,490/- and issued an Intimation under section 143(1) on 11/12/2023.
3. Grounds of appeal raised by the appellant included contentions that the Ld. CIT(A) erred in not granting credit for the entire TDS amount deducted under sections 194Q and 194A of the Act, and that the appellant, being a commission agent, should not have the gross sale proceeds treated as income.
4. The Authorized Representative argued that as per CBDT Circular No.452, the turnover for commission agents should only include the commission charged, not the sales on behalf of principals. The AR relied on a previous Tribunal decision favoring the appellant in a similar case.
5. The Departmental Representative supported the Ld. Revenue Authorities' orders.
6. The Judicial Member analyzed the CBDT Circular and the previous Tribunal decision, concluding that the appellant, being a licensed commission agent, should be considered an agent (kaccha arahtia) and is entitled to credit for the entire TDS amount deducted. The orders of the Ld. Revenue Authorities were set aside, and the AO was directed to grant the full TDS credit.
7. The decision was influenced by the consistency principle with a previous Tribunal ruling, and the appeal of the assessee was allowed.

This judgment highlights the importance of correctly interpreting tax laws and circulars to determine the eligibility of TDS credit for individuals like commission agents. The decision emphasizes the need for uniformity in applying legal principles across similar cases to ensure fairness and consistency in tax assessments.

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