2022 (12) TMI 1121

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..... 2. Grounds of appeal raised by the assessee read as under: "1. The ld.CIT(A) has erred in law and on facts in upholding the order of CPC passed u/s.154 without granting full credit of TDS as claimed resulting into grant of short refund. 2. He has erred in law and on facts that the entire receipt pertaining to TDS was duly reflected in the accounts of the assessee supported by the reconciliation submitted justifying grant of full credit." 3. As transpires from order of the authorities below, the facts relating to the case before us are that while processing return of income of the assessee for the impugned year under section143(1) by the CPC on 10.12.2019, there was a short credit of TDS given by Rs.8,79,205/-.Again....

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....ch in Form No.26AS as on the date of processing of the return under section 143(1) i.e. 10-12-2019 and at time of rejection of the rectification application-filed u/s 154 of the Act on 14-8-2020,the Form No.26AS filed before us by the assessee was updated form with data updated till 23-7-2021. Which means that, subsequent to the passing of the rectification order, and the order of the ld.CIT(A) which was passed on 26-4-2021, the assessee had got its TDS data rectified on 23.7.2021 ensuring that the TDS shown as not deducted on receipts from various parties in the list in para 4.4 of the CIT(A) order above, are duly reflected in the updated Form No.26AS. This fact was pointed out to the Ld. Counsel for the assessee who fairly admitted that t....

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.... a clearing and forwarding agent. INCOME TAX DEPARTMENT 4.2 It is further submitted by the appellant that the payments in the nature of reimbursement of expenditure received from its clients have been directly reduced from the expenditure claim and hence not shown in its gross receipts. 4.3 Perusal of order u/s.154 dated 14.08.2020 reveals that the reason for rejecting the rectification petition have been stated as mismatch of TDS as under: "As seen from the e-filed return of income filed by you, there is a variance in the tax credits claimed & allowed. This variance is due to non-availability of TDS/TCS credits in your account/26AS OR invalid TAN/incorrect entry of deducted year or amount/ Sch.TDS/....

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....claimed by you in the Return of Income and not matched as they are not reflected in your 26AS statement at the time of processing the Relum for the Assessment Year 2018-19. 1. This report will enable you to ascertain the extent of matching of your Tax Payments as entered and claimed by you in the Income Tax Return filed as against the data reported with the Department regarding TDS/TCS/Advance tax and Self-Assessment tax. Credit is given at the time of processing the return to the extent of matching as in Form 26AS. 2. The possible reasons for mismatch of tax credits and/or non-appearance of credit in 26AS are given in Table C as a guide to enable you to take appropriate and necessary action. Table No.B The following ar....