TaxTMI 
TaxTMI 
2025 (1) TMI 762
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct") for AY 2018-19 dated 31.07.2024, which has been passed against the assessment order u/s 143(3)/143(3A)/143(3B) of the Act, dated 12.02.2021. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: "1. For that the National Faceless Appeal Centre ("Ld. CIT(A)/NFAC") erred in not granting the TDS credit of INR 1,23,331 and Advance Tax of INR 1,75,000 pertaining to the amalgamating company as per the order passed by the Faceless Assessment Centre ("Ld. AO") under Section 143(3) read with Section 143(3A) and 143(3B) of the Income Tax Act, 1961 ("the Act"). 2. For that on the facts, and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating that the intima....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rcumstances of the case and in law, the Ld. CIT(A) erred in dismissing the appeal filed by the appellant by holding that the appeal filed against the assessment order passed under section 143(3) of the Act is infructuous. 7. For that on the facts, and in the circumstances of the case and in law, the Ld. CIT(A) erred in not directing the Ld. AO in granting the TDS credit claimed as per the Return of Income even after admitting that there is no dispute that amalgamated entity is eligible for the pre-paid tax credit of the amalgamating entity. 8. For that on the facts, and in the circumstances of the case and in law, the Ld. CIT(A) erred in not granting TDS credit and Advance Tax of Rs. 1,23,331 and Rs. 1,75,000 respectively,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0.09.2018 showing total income of Rs. 16,92,420/- and the case was selected for scrutiny under CASS with the reasons being 'amalgamation or demerger during the year' and 'large any other amount allowable as deduction claimed in Schedule BP of return'. Notice u/s 143(2) of the Act was issued and the assessee furnished the reply and after considering the reply, the income declared at Rs. 16,92,420/- was accepted in the order u/s 143(3) of the Act. However, neither in the initial intimation issued u/s 143(1) of the Act nor in the computation sheet forming part of the order u/s 143(3) of the Act, the credit for TDS and advance tax of Rs. 1,23,331/- and Rs. 1,75,000/- respectively pertaining to the amalgamating company was allowed. Aggrieved wit....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appellant. The consequent ground of short allowance of interest u/s 244A of the Act on the refund arising was also raised. The Ld. CIT(A) perused the assessment order and the submission of the assessee but treated the order u/s 143(3) of the Act as infructuous and dismissed the appeal. The relevant finding from the order of the Ld. CIT(A) is as under: "5.0 As evident from the facts above, there was an amalgamation of two entities viz., Deepshikha Trading Company Private Limited amalgamated company / transferee company) and M/s GMB Investments Private Limited (amalgamating company / transferor company. Post merger, the assessee filed the return of income of the merged entity and claimed the credit for prepaid taxes i.e. TDS of Rs. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he appeal in favour of the assessee. Therefore, the present appeal against the order u/s 143(3) is treated as infructuous and dismissed." 3.1. We have considered the rival contentions while the Ld. DR relied upon the order of the Ld. CIT(A). Ld. AR submitted that the rectification applications dated 20.05.2022 and 15.01.2024 filed u/s 154 of the Act against the assessment order u/s 143(3) of the Act are pending. An application dated 25.07.2019 u/s 154 of the Act was also filed before the CPC against the intimation order against u/s 143(1) of the Act which was rejected vide order u/s 154 of the Act dated 27.09.2019. 3.2. We have gone through the submissions made. The assessee contends that the income in respect of which TDS was deducte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce the amalgamating company is no longer in existence and all the assets and liabilities by virtue of the order of the NCLT were taken over by the amalgamated company, even the credit for TDS and advance tax had to be allowed to the amalgamated company. The assessee was claiming only a credit for the tax paid and neither in the intimation u/s 143(1) of the Act nor in the assessment order u/s 143(3) of the Act any addition was made and only the credit for TDS and advance tax was being made, therefore, the same ought to have been allowed in the hands of the person in whose case the income of the earlier entity was finally assessed. Hence, the grounds of appeal in respect of credit for TDS and Advance Tax are allowed and the order of the Ld. C....