2023 (11) TMI 329

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....Act, 1961 (hereinafter referred to as 'the Act') dated 14.05.2019 by the Assessing Officer, DCIT, CPC, Bangalore (hereinafter referred to as 'ld. AO'). 2. The assessee has raised the following grounds of appeal :- "1. That on the facts and in the circumstances of the case and in law, the order passed by the Commissioner of Income-tax (Appeals) - 42. New Delhi ('CIT(A)") under section 250 of the Income-tax Act, 1961 (the Act), is grossly incorrect and bad in law. 1.1 That on the facts and in the circumstances of the case and in law, the CIT(A) completely ignored that intimation issued under section 143(1) of the Act was modified by the Deputy Commissioner of Income tax, CPC (Assessing Officer) under section 154 without passing a wri....

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....t under Section 234A, 234B and 234C of the Act." 3. Though the assessee has raised several grounds, the only effective issue to be decided in this appeal is as to whether the ld CIT(A) was justified in confirming the action of the ld AO in not reducing the income of the assessee in consonance with reduction of TDS credit thereon as per revised Form No. 26AS. 4. We have heard the rival submissions and perused the materials available on record. The assessee is a foreign company engaged in rendering technical services. The assessee filed its return of income for AY 2017-18 on 23.12.2017 declaring fee for technical services income (FTS) on gross basis of Rs. 7,32,67,650/- as per the then Form 26AS claiming TDS credit of Rs. 95,67,745/-. In ot....

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....ised intimation u/s 143(1) read with section 154 of the Act retaining the income figure of Rs. 7,32,67,650/- and reducing the TDS credit to the tune of Rs. 28,97,609/-. Aggrieved by this revised intimation, the assessee preferred an appeal before the ld CIT(A). When the appeal was pending before the ld CIT(A), the aforesaid two deductors found further mistakes in their TDS returns by mentioning wrong PAN and further revised their TDS returns. Pursuant to this, the revised figures got reflected in Form 26AS of the assessee as under:- Sl. No. Name of the party Technical fee income TDS 1. Schenck Process Solutions India Private Limited 15233819 1523751 2. Schenck Process India Private 13776549 1454459   Total 29010368 2978....

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.... second time by the aforesaid two deductors having great impact on the income and TDS of the assessee. Hence, the assessee had rightly brought out this fact before the ld CIT(A). We are unable to comprehend ourselves to accept the argument advanced by the ld DR as the provisions of section 154 of the Act are meant only to rectify any mistake apparent on record. The assessee in the instant case had duly brought to the knowledge of the ld CIT(A) that income of the assessee had been wrongly determined by the ld CPC and that the correct income figure of the assessee would be Rs. 2,90,10,368/- and TDS thereon of Rs. 29,78,210/-. Infact the provisions of section 154(5) of the Act also provides for reduction in the income of the assessee for which....