TaxTMI 
TaxTMI 
2018 (7) TMI 1081
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.... Learned C.I.T (Appeals)-3 erred in not granting credit of TDS of Rs. 9,93,555/- deducted from the revenue included in the computation of the Income under the head Profits from Business and Profession during the previous year ended 31st March, 2008. The TDS of Rs. 9,93,555/- was paid by the Appellant's clients on 30th March, 2010. The TDS certificates were provided to the Appellant much after the due date of filing the return. The TDS was not claimed with the return as the same was deducted and paid to the Revenue Department much later then the due date of filing return. The Appellant vide his letter dated 10th July, 2013 made an application before the AO to grant the credit the TDS." 3. The brief facts of the case are that the assessee is a company engaged in the business of clearing and forwarding agent. The assessee filed return of income on 20-09-2008 declaring total income of Rs. 4,57,01,174/- and claimed credit for payment of aggregate taxes to the tune of Rs. 1,55,37,327/- out of which , inter-alia, claim of credit of income-tax deducted at source amount(TDS) was Rs. 89,44,765/- . The AO issued intimation u/s. 143(1) wherein the AO, inter-al....
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.... The ACIT 2(1) Mumbai. Dear Sir, Sub: Submission of Original TDS Certificates of Rs. 9,93,555/- Ref: PAN No: AAACE2632F A.Y 2008-2009 In connection with your intimation u/s. 143(1) dated 24/10/2009 for A.Y 2008-2009 and our submissions made on 17/09/2009, 24/05/2013 and 27/06/2013, we hereby submit TWO Original TDS Certificates (along with Indemnity Bond) details of which are as under; Name of the Party Amount Paid/Credited (In Rs.) Date of Payment/ Credit Total TDS amount (In Rs.) Date on which Tax is paid Challan No. Date of Certificate Elecon Engineering Co. Pvt Ltd 1,94,10,060 31/03/2008 4,39,832 31/03/2010 54034 31/03/2010 Elecon Engineering Co. Pvt Ltd 2,33,03,022 31/03/2008 5,28,046 31/03/2010 54062 31/03/2010 Sub-Total 4,27,13,082 9,67,878 ....
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....press Transport Private Limited) Sd/- PRANAVSHAH SR. MANAGER FINANCE & TAXATION Encl: as above Despite this aforesaid letter dated 02.07.2013 filed by the assessee along with two original TDS certificates and Indemnity Bonds with the AO(which all are placed in paper book at page no. 16-23 along with the letter dated 02-07-2013 ) , the AO did not granted relief to the assessee in an order dated 01.05.2015 passed u/s. 154 of the Act so far as TDS credit to the tune of Rs. 9,93,555/- is concerned which of course was not originally claimed by the assessee in the return of income filed with the Revenue but however the AO in its order passed u/s 154 allowed TDS credit to the tune of Rs. 89,44,765/- as was claimed by the assessee in the return of income filed with the Revenue as against TDS credit of Rs. 79,05,771/- granted in the intimation issued by the AO u/s 143(1) . 5. Aggrieved by the denial of the TDS credit to the tune of Rs. 9,93,555/- by the AO in an order of rectification passed u/s 154 by the AO on 01.05.2015 , which claim of TDS credit albeit was not claimed by the assessee in the return of income filed with Revenue due to late deposit of TDS ....
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....And vide letter dated 26th June,2013 (As attached on Page No. 06 ) for short term capital gain. 6.3 The Appellant's grievance is that its claim for grant of credit of TDS of Rs. 9,93,555/- vide letter dated 02nd July,2013, has not been considered. (Copy of the letter alongwith Original TDS certificate, Ledger Copies and Indemnity Bond being attached on page no. 07-49). The TDS of Rs. 9,93,555/- was paid by the Appellants clients on 30th March,2010 and the certificates were provided much after the due date of filing the return i.e 30th September, 2009 . The tabulation of the delayed TDS payment is as follows: Name of Party Amount Paid/Credited In Rs. Date of Payment/Credit Total TDS Amount In Rs. Date on which Tax is paid Challan No. Date of Certificate Elecon Engineering Co.Pvt Lid 1,94,10,060 31/03/2008 4,39,832 31/03/2010 54034 31/03/2010 Elecon Engineering Co.Pvt Lid 2,33,03,022 31/03/2008 5,28,046 31/03/2010 54062 31/03/2010 Sub-Total 4,27,13,082 9,67,878 ....
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....TDS of Rs. 89,44,765/-, which the AO has granted. Two parties namely M/s Elecon Engineering Co. Pvt. Ltd. and Prayas Engineering Ltd. had deducted TDS in the case of the appellant has deducted tax of Rs. 9,67,878/- and Rs. 25,677/- respectively and paid to the Govt Account on 31.03.2010. This amount of TDS which was deducted by the above mentioned two parties and paid to the Govt. Account on 31.03.2010, which was not claimed by the appellant in his return of income filed on 20.09.2008, nor was found reflected in Form 26AS, and, therefore, the AO has not taken this into consideration. The appellant submitted that Principal of Natural Justice and Equity has been violated by the AO for non grant of TDS amounting to Rs. 9,93,555/-. The appellant has also given a reference of Circular No. 5/2013 dated 08.07.2013 and again Circular No. 14 XL-35 dated 11.04.1955. The appellant has also relied upon case laws namely:- 1. DCIT Circle 10(1) vs. Desein Pvt Ltd (ITAT - New Delhi)- (ITA nos.3488, 3489/Del/2013 AY 2007-08 and 2008-09 dt.11th May, 2011. 2. Sandersons & Morgans Kolkata, vs. ACIT Circle 54, Kolkata (ITAT Kolkata) - (ITA No.1520/Kol/2009 AY 2004-05 dt 23rd September....
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....nt at length, so the grievance of the appellant of Natural Justice and Equity has been met out after giving the hearing at length and opportunity of being heard. Since the appellant does not fall under the provision of the IT Act as the claim of TDS is made after 4 years, I am of the opinion that the appellant's claim is not acceptable. In view of the same, Ground of Appeal is dismissed. 7. In the result, the appeal for AY 2008-09 is dismissed." 6. Aggrieved by the appellate order dated 11.11.2016 passed by learned CIT(A), the assessee has come in an appeal before the tribunal . The Ld. Counsel for the assessee vehemently argued that the contentions were raised during the course of proceedings before the AO u/s. 154 of the Act wherein it was submitted that assessee was not at fault because the deductor had not deposited the income-tax deducted at source on behalf of the assessee to the Credit of Central Government in time and consequentially TDS certificates were also received late by the assessee. It was submitted that the assessee was not aware of such deduction of income-tax at source by the deductors at the time of filing of return of income u/s 139(1) on 20-09-2008....
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.... of Section 155(14) of the Act and relied upon the appellate orderdated 11.11.2016 passed by the learned CIT(A). The Ld. Counsel for the assessee in rejoinder submitted that provisions of Section 155(14) are applicable only when the assessee had filed a claim for credit of prepaid taxes by way of TDS in the return of income filed with the Revenue and such return of income so filed with Revenue is not supported by TDS certificate . It was submitted that under these circumstances keeping in view factual matrix of the case provisions of Section 155(14) are not applicable and it was submitted ITAT-Ahmadabad while deciding the case of Ardor International P. Ltd.(supra) in similar situation has considered the provisions of section 155(14) of the Act and decided the issue in favour of the assessee. 7. We have considered rival contentions and have perused the material on record including case laws relied upon the both the parties. We have observed that the assessee is in the business of clearing and forwarding agent. The assessee has filed return of income with Revenue u/s 139(1) on 20-09-2008 declaring income of Rs. 4,57,01,174/- on which taxes of Rs. 1,55,37,327/- were claimed to h....
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.... for no fault of the assessee which consequently led to issue of TDS certificate late by said payers of income which is clearly evident from the date of deposit of TDS as well date of issuance of TDS certificates as is mentioned in TDS certificate issued by these two parties which are placed in paper book. The assessee is not in fault and assessee in any case has filed its claim for credit of TDS to the tune of Rs. 9,93,555/- in the ongoing proceedings conducted by the AO u/s. 154 of Act. The ITAT-Rajokot in ACIT v. Rupam Impex(supra) and ITAT-Ahmedabad in Ardor International Private Limited (supra) has dealt with this issue at length and we are in full agreement with the aforesaid decisions of the tribunal allowing relief to the assessee which we respectfully follow and hold that the assessee would be entitled for the relief of credit of income-tax deducted on income by the payers of the income which income was claimed to have been offered for taxation by the assessee in the return of income filed with Revenue filed u/s 139(1). The ITAT- Ahmedabad while holding in favour of the taxpayer has also dealt with the provisions of Section 155(14) of the 1961 Act on which heavy reliance i....